Use the Following to Answer Question

question 190

Multiple Choice

Use the following to answer question:
-(Figure: The Gains from Trade) Look at the figure The Gains from Trade.When demand increases from D₁ to D₂,equilibrium total surplus:

• A)decreases by $10.00.
• B)increases by $12.75.
• C)decreases by $15.00.
• D)increases by $27.50.

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Definitions:

Nearest Tenth

Rounding to the closest tenth means adjusting a number to one decimal place.

Decimal

A number that includes a decimal point to represent a fraction of a whole.

Percentage

A way of expressing a number as a fraction of 100, denoted by the symbol %.

Lowest Terms

A fraction in which the numerator and denominator have no common factors other than 1, making it the simplest form of the fraction.