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.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

For a small country called Boxland, the equation of the domestic demand curve for cardboard is
QD350-2P, 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.
C) $2,402.50.
D) $9,486.00.

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Step 3: Determine the total surplus before international trade:

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Step 4: Determine the quantity supplied and quantity demanded at world price:

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Step 5: Determine the total surplus under free trade:

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Step 6: Determine the grain from international trade:

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