Use the following to answer question:
-(Figure: The Market for Beats by Dre)Use Figure: The Market for Beats by Dre.If the world price equals $100 and there is free trade,producer surplus:

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Use the following to answer question: 
-(Figure: The Market for Beats by Dre)Use Figure: The Market for Beats by Dre.If the world price equals $100 and there is free trade,producer surplus:

Quizplus · Accepted Answer

With free trade and a world price of $100, the domestic price will also be $100. This is below the domestic equilibrium price of $125, which means that domestic producers will not be able to sell as much and some may even go out of business, causing producer surplus to fall.

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