Refer to Scenario 9-1. Suppose the world price of cardboard is $82.5. Then, relative to the no-trade situation, international trade in cardboard

A) harms Boxlandian consumers by $1,518.75 and benefits Boxlandian producers by $1,392.19.
B) harms Boxlandian consumers by $1,518.75 and benefits Boxlandian producers by $2,784.38.
C) harms Boxlandian consumers by $759.38 and benefits Boxlandian producers by $2,784.38.
D) harms Boxlandian consumers by $759.38 and benefits Boxlandian producers by $1,392.19.

To determine the impact of international trade on Boxlandian consumers and producers, we first find the equilibrium price and quantity in the no-trade situation by setting the demand equation equal to the supply equation: $210-2P=-90+3P$ . Solving for $P$ gives us the no-trade equilibrium price. Substituting the world price of $82.5 into the demand and supply equations gives us the quantities demanded and supplied at the world price. The difference in consumer and producer surplus from the no-trade situation to the trade situation gives us the net benefit or harm to consumers and producers. Calculating these differences with the given world price of $82.5 shows that consumers are harmed by $1,518.75 due to higher prices and reduced consumer surplus, while producers benefit by $2,784.38 due to access to a larger market and increased producer surplus.