The Effects of Trade on Well-Being - Figure 2.4

The table below summarizes the effects of trade on the welfare of different groups within the United States using the concepts of consumer and producer surplus we just learned. Click on an element in the table below to show each effect in the graph above. Click continue when you are ready to move on to the next page.

Group in U.S.Surplus with
Free Trade		Surplus with
No Trade		Net Effect

U.S. Consumers

a+b+c+d

c

a+b+d

U.S. Producers

e

a+e

-a [a loss]

U.S. as a whole
(consumers plus producers)

a+b+c+d+e

c+a+e

b+d