Scenario 9-1 ​

Multiple Choice

Scenario 9-1
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For a small country called Boxland, the equation of the domestic demand curve for cardboard is Q^D = 210 − 2P, where Q^D 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^S = -90 + 3P, where Q^S 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 $82.5. Then, relative to the no-trade situation, international trade in cardboard

A) harms Boxlandian consumers by $1,518.75 and benefits Boxlandian producers by $1,392.19.
B) harms Boxlandian consumers by $1,518.75 and benefits Boxlandian producers by $2,784.38.
C) harms Boxlandian consumers by $759.38 and benefits Boxlandian producers by $2,784.38.
D) harms Boxlandian consumers by $759.38 and benefits Boxlandian producers by $1,392.19.