A Level Economics (9708)•9708/12/M/J/18

Explanation
Consumer Surplus Loss from Banning Imports Steps:
- In free trade, price is Pw (world price), quantity demanded is Qd (point E1 on demand curve).
- Banning trade raises price to autarky level Pa (point P), reducing quantity to Qa (point Y).
- Consumer surplus with trade is the area above Pw up to demand curve to Qd.
- Loss is the area between demand curve from Qa to Qd and down to Pw, equaling trapezoid PYE1.
Why B is correct:
- PYE1 is the exact area of foregone consumer surplus, per the definition of consumer surplus as integral under demand curve above price.
Why the others are wrong:
- A: PZE1 includes producer surplus gain, not pure consumer loss.
- C: YE2 measures deadweight loss triangle, not total consumer surplus change.
- D: ZYE2 combines unrelated areas like tariff revenue, irrelevant to trade ban.
Final answer: B
Topic: Protectionism
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