Country X has usual demand and supply curves for producing television while country Y only has a typical demand curve, but it cannot produce the television. Use the three-panel diagram described in Week 2 lecture content to:

a)Show in a set of graphs the free-trade equilibrium for television.Indicate the equilibrium world price. How does this world price compare to the no-trade price in Country X?Indicate how many televisions are traded under free international trade. Make sure to state the assumptions.

b)Show graphically and explain the effects of the shift from no trade to free trade on surpluses in each country.Indicate the net national gain or loss from no trade to free trade for each country.