The Figure Above Shows the U

question 62

Multiple Choice

The figure above shows the U.S. market for airplanes, where SUS is the domestic supply curve and DUS is the domestic demand curve. The United States trades freely with the rest of the world. The world price of an airplane is $150 million.
-Based on the figure above,as a result of international trade,consumer surplus

• A) increases by $15 billion.
• B) decreases by $15 billion.
• C) increases by $27.5 billion.
• D) decreases by $12.5 billion.
• E) remains unchanged.

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Definitions:

Variable

A characteristic, number, or quantity that can be measured or quantified and can vary among individuals or over time.

Least Squares Line

A straight line that minimizes the sum of the squared differences between the observed values and the values predicted by the line.

Sales

The transactions involving the exchange of goods or services for money or value, typically measured over a particular period of time.

Advertising

The process or occupation involved in creating promotional content for goods or services.