Suppose the U.S domestic demand curve and domestic supply curve for shale gas are Qd=200-12P and Qs=18P-154. The world price Pw=350. The accompanying diagram illustrates a firm operating in a competitive shale gas market has the following cost curves. What are the effects of trade? 340 200 P ATC AVC MC rect Answer Domestic consumer's surplus is decreasing, and this firm is producing shale gas. Answered The United States' total surplus is increasing, but the firm is producing at its pre-trade level. O The world price is decreasing, and domestic consumer's surplus is increasing.