In Nigeria, the inverse demand for cashews is P = 20 — QDand the inverse supplyis P = 4 + Q5. In the rest of the world, cashews sell for P = 16.

Graph the market for cashews in Nigeria when it has free trade, labeling the world price, exportsQ0, Q5, CS, and PS.

Consider Nigeria in question 9, comparing a before time when Nigeria is closedofl to trade and doesn’t trade with the rest of the world, and an after time whenNigeria has opened to trade and has free trade.

a. Calculate how much CS is lost going from before to after.

b. Calculate how much PS is gained going from before to after.