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380 Domestic Demand Domestic Supply Consumer Surplus PW Producer Surplus 8 3 PRICE (Dollars per ton) 290 275 260 245 230 0 25 50 75 100 125 150 175 200 225 250 QUANTITY ( Tons of pears) When Guatemala adjusts its trade policy to allow free trade of pears, the price of one ton of pears in Guatemala becomes $350. At this price, tons of pears will be demanded in Guatemala, and tons will be supplied by domestic suppliers. Therefore, Guatemala will export tons of pears. Using the information from the previous tasks, complete the following table to analyze the welfare effect of allowing free trade. With Free Trade Without Free Trade (Dollars) ( Dollars) Consumer Surplus Producer Surplus When Guatemala allows free trade, the country's producer surplus increases by $ , and consumer surplus decreases by s Therefore, the net effect of allowing international trade on Guatemala's total surplus is a gain of Grade It Now Save & Continue