10 . Suppose the market for automobiles in Seattle is a competitive market currently in equilib rium . ( 2 ) Depict this market graphically . 5 points . Price Seattle's automobile wicket Pa DO Quantity ( b) Suppose that the market for automobiles is opened to international trade - it was pre- viously closed - and that as a result the domestic price of automobiles falls . Depict this new situation graphically . Identify the gains and losses to domestic consumers and producers as a result of this new situation . 10 points . TBT C . A C.S. = DABAG Po PA D Rent = - B B PW P_ Q . . consumer gain the area BIC. Import where as producers loses area BQuestion 10 continues ? Now , after opening to trade , suppose that as a result of new infrastructure built by the city of Seattle , public transportation ( Bus and Rail ) becomes a faster way to get to and from downtown than in the past . ( C ) Depict the effect this will have on the equilibrium in the domestic market for automobiles explaining how and why the equilibrium is affected . 5 points \\50 Q , Qo . The equilibrium will fall to a lower price and lower quantity. ( d) Ate the domestic gains from opening to trade bigger or smaller under this new situation relative to what you found above ? 5 points . The decrease in demand will PA reduce the . day Spin! PW By Q gain five the trade