4 . Welfare effects of free trade in an importing country Consider the Bolivian market for lemons. The following graph shows the domestic demand and domestic supply curves for lemons in Bolivia. Suppose Bolivia's government currently does not allow international trade in lemons. Use the black point (plus symbol) to indicate the equilibrium price of a tonne of lemons and the equilibrium quantity of lemons in Bolivia in the absence of international trade. Then, use the green point (triangle symbol) to shade the area representing consumer surplus in equilibrium. Finally, use the purple point (diamond symbol) to shade the area representing producer surplus in equilibrium. Note: Select and drag a fill area point from the palette to the graph. To fill in regions on the graph, merely drop the fill area point on the desired region. (? ) 1150 Domestic Demand Domestic Supply -+ 1100 1050 No Trade Equilibrium PRICE (Dollars per tonne) 1000 A 950 Consumer Surplus 900 850 Producer Surplus 800 750 700 650 40 80 120 160 200 240 280 320 360 400 QUANTITY (Thousands of tonnes of lemons)(? 1150 Domestic Demand Domestic Supply 1100 Consumer Surplus 1050 PRICE (Dollars per tonne) 1000 950 Producer Surplus 900 850 800 World Price 750 700 650 0 40 80 120 160 200 240 280 320 360 400 QUANTITY (Thousands of tonnes of lemons) When Bolivia allows free trade in lemons, the price of a tonne of lemons in Bolivia will be $800. At this price, the quantity of lemons demanded by Bolivian consumers will be tonnes , and the quantity of lemons supplied by domestic producers will be tonnes . Therefore, Bolivia will import tonnes of lemons. Using the information from the previous tasks, complete the following table to analyze the welfare effect of allowing free trade. (Hint: Be sure to enter consumer and producer surplus in millions of dollars. Take note of the units on the graph.) Without Free Trade With Free Trade (Millions of dollars) (Millions of dollars) Consumer Surplus Producer Surplus