3 Draw a graph to illustrate the UK wholesale market for roses. Show the equilibrium in that market with no international trade and the equilibrium with free trade. Mark the quantity of roses produced in the UK, the quantity imported and the total quantity bought.

Wholesalers of roses (the firms that supply your local flower shop with roses for Valentine’s Day) buy and sell roses in containers that hold 120 stems. The table provides information about the wholesale market for roses in the UK. The demand schedule is the wholesalers’ demand and the supply schedule is the UK rose growers’ supply.

Wholesalers can buy roses at auction in Aalsmeer, Holland, for £125 per container.

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Price (pounds per container) Quantity demanded Quantity supplied (millions of containers per year) 100 15 125 12 52 150 9 175 6 246 02 0 200 3 8 225 0 10