Assume that the market for cotton clothing is perfectly competitive. WeaveLand is a net exporter of cotton clothing.

Assume that the world price for cotton clothing decreases by $10 per unit, from WP1 to WP2, because producers in SpinLand have developed a more efficient way of producing cotton clothing. Suppose WeaveLand continues to be an exporter of cotton clothing after the change.

a) Use a graph and explain how this decrease in the world price will affect the equilibrium outcome in the market for cotton clothing in WeaveLand (indicate new price, new quantity supplied, new quantity demanded, new exports). [9 marks]