Suppose the Domestic Supply (Q^S) and Demand (Q^D)for MP3 Players $$\begin{array} { l } Q ^ { S } = - 25 + 10 P \\Q ^ { D } = 875 - 5 P\end{array}$$

question 36

Multiple Choice

Suppose the domestic supply (Q^S) and demand (Q^D) for MP3 players in the United States are given by the following set of equations: $$\begin{array} { l } Q ^ { S } = - 25 + 10 P \\Q ^ { D } = 875 - 5 P\end{array}$$ The consumer surplus will _____ by _____ when the United States engages in international trade and the international price for MP3 players settles at $50.

• A)increase; $2,625
• B)increase; $6,000
• C)decrease; $7,150
• D)decrease; $13,500

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