Figure 5.1 illustrates the steel market for Mexico, assumed to be a "small" country that is unable to affect the world price. Suppose the world price of steel is given and constant at $200 per ton. Now suppose the Mexican steel industry is able to obtain trade protection.
Figure 5.1. Alternative Nontariff Trade Barriers Levied by a "Small" Country 
-Consider Figure 5.1.With free trade, Mexico's consumer surplus and producer surplus respectively equal
A) $2000 and $1200.
B) $3200 and $200.
C) $3600 and $800.
D) $4000 and $600.
Correct Answer:
Verified
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