Suppose the Domestic Supply (Q^S) and Demand (Q^D) for Skateboards $$\begin{array} { l } Q ^ { S } = - 60 + 3 P \\Q ^ { D } = 390 - 2 P\end{array}$$

Suppose the domestic supply (Q^S) and demand (Q^D) for skateboards in the United States are given by the following set of equations: $$\begin{array} { l } Q ^ { S } = - 60 + 3 P \\Q ^ { D } = 390 - 2 P\end{array}$$ Calculate the change in producer surplus when the United States engages in free trade and imports skateboards from the rest of the world at a per unit price of $75.

A) +$2,812.50.
B) -$2,812.50.
C) +$3,375.
D) -$3,375.

Correct Answer:

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