In the diagram, D and S represent the domestic demand and supply curves for a product. Sw represents world supply of the product at a world price of Pw. The initial domestic market equilibrium of the product is at E1. If foreign trade were to be banned completely, the domestic market equilibrium would be at E2. [Figure showing domestic supply (S), domestic demand (D), world supply (Sw) at Pw, and points X, Y, E1, E2, Z, Q1.] What would be the loss of consumer surplus if all foreign trade were banned?
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✓ Correct answer
B: PwYE2E1
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