For a small country called Boxland, the equation of the domestic demand curve for cardboard isQD= 200 - 2P, where QD represents the domestic quantity of cardboard demanded, in tons, and P represents the price of a ton of cardboard. For Boxland, the equation of the domestic supply curve for cardboard is Q$ = -60 + 3P, where QS represents the domestic quantity of cardboard supplied, in tons, and P again represents the price of a ton of cardboard. Refer to Scenario 9-1. Suppose the world price of cardboard is $45. Then, relative to the no-trade situation, international trade in cardboard produces which of the following results for Boxland? O a. It decreases consumer surplus, increases producer surplus, and increases total surplus. Ob. It increases consumer surplus, decreases producer surplus, and increases total surplus. O C. It increases consumer surplus, decreases producer surplus, and decreases total surplus. O d. It increases consumer surplus, increases producer surplus, and increases total surplus.

For a small country called Boxland, the equation of the domestic demand curve for cardboard isQD= 200 - 2P, where QD represents the domestic quantity of cardboard demanded, in tons, and P represents the price of a ton of cardboard. For Boxland, the equation of the domestic supply curve for cardboard is Q$ = -60 + 3P, where QS represents the domestic quantity of cardboard supplied, in tons, and P again represents the price of a ton of cardboard. Refer to Scenario 9-1. Suppose the world price of cardboard is $45. Then, relative to the no-trade situation, international trade in cardboard produces which of the following results for Boxland? O a. It decreases consumer surplus, increases producer surplus, and increases total surplus. Ob. It increases consumer surplus, decreases producer surplus, and increases total surplus. O C. It increases consumer surplus, decreases producer surplus, and decreases total surplus. O d. It increases consumer surplus, increases producer surplus, and increases total surplus.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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