Scenario 9-2 • for a Small Country Called Boxland,the Equation of the of the Domestic

Multiple Choice

Scenario 9-2
• For a small country called Boxland,the equation of the domestic demand curve for
cardboard is ,
where represents the domestic quantity of cardboard demanded,in tons,and represents the price of a ton of cardboard.
• For Boxland,the equation of the domestic supply curve for cardboard is ,
where represents the domestic quantity of cardboard supplied,in tons,and again
represents the price of a ton of cardboard.
-Refer to Scenario 9-2.Suppose the world price of cardboard is $60.Then,relative to the no-trade situation,international trade in cardboard produces which of the following results for Boxland?

A) It decreases consumer surplus,increases producer surplus,and decreases total surplus.
B) It decreases consumer surplus,increases producer surplus,and increases total surplus.
C) It decreases consumer surplus,decreases producer surplus,and decreases total surplus.
D) It increases consumer surplus,increases producer surplus,and increases total surplus.