Figure: The Market for MP₃ Players
(Figure: The Market for MP₃ Players) Look at the figure The Market for MP₃ Players.In the market
for MP₃ players, if the world price equals $100 and there is free trade, which of the following occurs?
A.There is a gain in producer surplus equal to $1.5 million.
B.There is a gain in producer surplus equal to $2 million.
C.There is a gain in producer surplus equal to $750,000.
D.Producer surplus is reduced.

Question

Figure: The Market for MP₃ Players
   (Figure: The Market for MP₃ Players) Look at the figure The Market for MP₃ Players.In the market
for MP₃ players, if the world price equals $100 and there is free trade, which of the following occurs? 
A.There is a gain in producer surplus equal to $1.5 million.
B.There is a gain in producer surplus equal to $2 million.
C.There is a gain in producer surplus equal to $750,000.
D.Producer surplus is reduced.

Quizplus · Accepted Answer

The Answer of Figure: The Market for MP₃ Players
   (Figure: The Market for MP₃ Players) Look at the figure The Market for MP₃ Players.In the market
for MP₃ players, if the world price equals $100 and there is free trade, which of the following occurs? 
A.There is a gain in producer surplus equal to $1.5 million.
B.There is a gain in producer surplus equal to $2 million.
C.There is a gain in producer surplus equal to $750,000.
D.Producer surplus is reduced.

Figure: the Market for MP₃ Players