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Suppose the Domestic Supply (QS) and Demand (QD) for Skateboards QS=60+3PQD=3902P\begin{array} { l } Q ^ { S } = - 60 + 3 P \\Q ^ { D } = 390 - 2 P\end{array}

Question 9

Multiple Choice

Suppose the domestic supply (QS) and demand (QD) for skateboards in the United States are given by the following set of equations: QS=60+3PQD=3902P\begin{array} { l } Q ^ { S } = - 60 + 3 P \\Q ^ { D } = 390 - 2 P\end{array} Calculate the change in consumer surplus when the United States engages in free trade and imports skateboards from the rest of the world at a per unit price of $75.


A) +$2,850
B) -$2,850
C) -$6,300
D) +$3,375

Correct Answer:

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