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.

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Definitions:

Retinal Disparity

The slight difference in visual perspective between the two eyes, contributing to depth perception.

Hue

The aspect of color that is determined by the wavelength of light and is perceived as the color itself, such as red, blue, or green.

Pitch

The perception of how high or low a sound is, determined by the frequency of sound waves.

Brightness

The perception of the intensity of light emitted or reflected by an object, contributing to its visibility.