For a small country called Boxland, the equation of the domestic demand curve for cardboard is QD=350-2P, where QD 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 QS = -60+ 3P, where Q5 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 $51. Then Boxland's gains from international trade in cardboard amount to A) $1,201.25. B) $4,805.00. $2,402.50. $9,486.00.

For a small country called Boxland, the equation of the domestic demand curve for cardboard is QD=350-2P, where QD 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 QS = -60+ 3P, where Q5 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 $51. Then Boxland's gains from international trade in cardboard amount to A) $1,201.25. B) $4,805.00. $2,402.50. $9,486.00.

Microeconomics: Principles & Policy

14th Edition

ISBN:9781337794992

Author:William J. Baumol, Alan S. Blinder, John L. Solow

Publisher:William J. Baumol, Alan S. Blinder, John L. Solow

Chapter4: Supply And Demand: An Initial Look

Section: Chapter Questions

Problem 3TY

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