Figure 9-1 Figure 9-1 Shows the U.S. Demand and Supply for Leather

Multiple Choice

Figure 9-1

Figure 9-1 shows the U.S. demand and supply for leather footwear.
-Refer to Figure 9-1.Suppose the government allows imports of leather footwear into the United States.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.