(Figure: The Gains from Trade) Look at the figure The Gains from Trade.When demand increases from D₁ to D₂,equilibrium total surplus:

A) decreases by $10.00.
B) increases by $12.75.
C) decreases by $15.00.
D) increases by $27.50.

Total Surplus

The sum of consumer surplus and producer surplus in a market; it represents the total net benefit to society from the production and consumption of a good.

Equilibrium

Describes a state in a market where the quantity of a product supplied is equal to the quantity of the product demanded, leading to a stable price.

Gains from Trade

The benefits that parties obtain by engaging in voluntary trade, allowing them to acquire goods and services they desire at less cost compared to self-production.