Figure 7.1 Figure 7.1 Shows Canadian Demand and Supply for Leather Footwear

Multiple Choice

Figure 7.1

Figure 7.1 shows Canadian demand and supply for leather footwear.
-Refer to Figure 7.1.Suppose the government allows imports of leather footwear into Canada.The market price falls to $18.What are the values of consumer surplus and domestic producer surplus?

A) Consumer surplus = $270; producer surplus = $40.
B) Consumer surplus = $320; producer surplus = $40.
C) Consumer surplus = $320; producer surplus = $360.
D) Consumer surplus = $305; producer surplus = $320.