France represents a small part of the world apple market.

a. Draw a diagram depicting the equilibrium in the French apple market without international trade.

Identify the equilibrium price, equilibrium quantity, consumer surplus and producer surplus.

b. Suppose that the world apple price is below the French price before trade, and that the French apple market is now opened to trade. Identify the new equilibrium price, quantity consumed, quantity produced domestically and quantity imported. Also show the change in the surplus of domestic consumers and producers. Has domestic total surplus increased or decreased?