8. The world price can be higher than the domestic price; this generates exports rather than imports. Copy the following supply and demand curves for pounds of cheese in Wisconsin. Notice that the world price is above the domestic equilibrium price.

a. Highlight the pounds of cheese exported from Wisconsin (a length, not an area).

b. Shade in the area that represents the consumer surplus with free trade. Relative to the domestic market alone, has consumer surplus increased or decreased?

c. Shade in the area that represents the producer surplus with free trade. Relative to the domestic market alone, has producer surplus increased or decreased?

d. Within Wisconsin, who wins and who loses from free trade in cheese?