The Total Gains from Trade Within a Price System Is

question 63

Multiple Choice

The total gains from trade within a price system is

• A) the area beneath the market demand curve and above the market clearing price plus the area above the market supply curve and beneath the market clearing price.
• B) the area beneath the market supply curve and above the market clearing price plus the area above the market demand curve and beneath the market clearing price.
• C) the area beneath the market demand curve and above the market clearing price minus the area beneath the market supply curve and beneath the market clearing price.
• D) always equal to zero.