Suppose the domestic supply (QS) and demand (QD) for skateboards in the United States is represented by the following set of equations:QS = -60 + 3PQD = 390 - 2PCalculate 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. +$3,375.
B. +$2,812.50.
C. -$2,812.50.
D. -$3,375.
Answer: C
Economics
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