Market demand for steel in econland is given by the domestic demand function of qd=40-4p. the domestic supply of steel is given by qs=p.P is the price of steel per gram. For years, Econland has not traded with the world in the steel market.However, a new president has taken office, and she decides to open up trade agreements with the rest of the world. The world price of steel is $ 4 per gram. By how much do Producer, Consumer and Total Surplus change?
a.PS decreases by 24 CS decreases by64 total surplus decreases by88
b.PS decreases by CS 24 decreases by 64 total surplus decreases by40
c.PS decreases by CS 32decreases by 8 total surplus decreases by 40
d.PS decreases by CS32 decreases by 8 total surplus decreases by26
e.None of the above
