Scenario 9-1 ​

Scenario 9-1
​
For a small country called Boxland, the equation of the domestic demand curve for cardboard is Q^D = 210 − 2P, where Q^D 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 Q^S = -90 + 3P, where Q^S 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 $82.5. Then Boxland's gains from international trade in cardboard amount to

A) $632.81.
B) $2,531.25.
C) $1,265.63.
D) $7,425.00.

Correct Answer:

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