Use the Following Figure to Answer the Questions : Figure

question 8

Multiple Choice

Use the following figure to answer the questions : Figure 10-3 : shows the demand and supply for a commodity in the domestic U.S.market as well as the global market.The commodity is imported from the rest of the world to the U.S.market.
-Refer to Figure 10-3.The total consumer surplus prior to trade was _____.

• A)P₄EP₃
• B)P₄KP₂
• C)P₄ELP₂
• D)P₃EP₀

---

Definitions:

Market Value

The current price at which an asset or service can be bought or sold in a competitive marketplace.

Assessed Valuation

The dollar value assigned to a property for purposes of measuring applicable taxes, determined by a public tax assessor.

Taxation

The imposition of compulsory levies on individuals or entities by governments to fund public expenditures.

Market Value

The estimated amount for which an asset or liability should exchange on the valuation date between a willing buyer and a willing seller in an arm's length transaction.