Consider the Burundian market for tangerines.

The following graph shows the domestic demand and domestic supply curves for tangerines in Burundi. Suppose Burundi's government currently does not allow international trade in tangerines.

Use the black point (plus symbol) to indicate the equilibrium price of a ton of tangerines and the equilibrium quantity of tangerines in Burundi in the absence of international trade. Then, use the green triangle (triangle symbol) to shade the area representing consumer surplus in equilibrium. Finally, use the purple triangle (diamond symbol) to shade the area representing producer surplus in equilibrium.

2 660 Domestic Demand Domestic Supply 620 580 Equilibrium without Trade PRICE (Dollars per ton) 540 500 Consumer Surplus 460 420 Producer Surplus 380 340 300 260 45 10 135 180 225 270 315 360 405 450 QUANTITY (Tons of tangerines) Based on the previous graph, total surplus in the absence of international trade is The following graph shows the same domestic demand and supply curves for tangerines in Burundi. Suppose that the Burundian government changes its international trade policy to allow free trade in tangerines. The horizontal black line ( Pw) represents the world price of tangerines at $500 per ton. Assume that Burundi's entry into the world market for tangerines has no effect on the world price and there are no transportation or transaction costs associated with international trade in tangerines. Also assume that domestic suppliers will satisfy domestic demand as much as possible before any exporting or importing takes place. Use the green triangle (triangle symbol) to shade consumer surplus, and then use the purple triangle (diamond symbol) to shade producer surplus.Use the green triangle (triangle symbol) to shade consumer surplus, and then use the purple triangle (diamond symbol) to shade producer surplus. 660 Domestic Demand Domestic Supply 620 580 Consumer Surplus PRICE (Dollars per ton) 540 500 Producer Surplus PW 160 420 380 340 300 260 O 45 90 135 180 225 270 315 360 405 450 QUANTITY (Tons of tangerines) When Burundi allows free trade of tangerines, the price of a ton of tangerines in Burundi will be $500. At this price, tons of tangerines will be demanded in Burundi, and tons will be supplied by domestic suppliers. Therefore, Burundi will export tons of tangerines. Using the information from the previous tasks, complete the following table to analyze the welfare effect of allowing free trade. Without Free Trade With Free Trade (Dollars) (Dollars) Consumer Surplus decreases Producer Surplus increases When Burundi allows free trade, the country's consumer surplus by $ , and producer surplus by . So, the net effect of international trade on Burundi's total surplus is a of $