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Figure 9-7

Question 117

Multiple Choice

Figure 9-7.The figure applies to the nation of Wales and the good is cheese. Figure 9-7.The figure applies to the nation of Wales and the good is cheese. -Refer to Figure 9-7.Which of the following is a valid equation for the gains from trade? A) Gains from trade = (1/2) (P<sub>1</sub> - P<sub>0</sub>) (Q<sub>2</sub> - Q<sub>1</sub>) . B) Gains from trade = (1/2) (P<sub>1</sub> - P<sub>0</sub>) (Q<sub>2</sub> - Q<sub>0</sub>) C) Gains from trade = (1/2) (P<sub>1</sub> - P<sub>0</sub>) (Q<sub>1</sub> + Q<sub>2</sub>) . D) Gains from trade = (1/2) (Q<sub>1</sub>) (P<sub>3</sub> - P<sub>1</sub>) .
-Refer to Figure 9-7.Which of the following is a valid equation for the gains from trade?


A) Gains from trade = (1/2) (P1 - P0) (Q2 - Q1) .
B) Gains from trade = (1/2) (P1 - P0) (Q2 - Q0)
C) Gains from trade = (1/2) (P1 - P0) (Q1 + Q2) .
D) Gains from trade = (1/2) (Q1) (P3 - P1) .

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