Figure $1$ shows the good $x$ market in country $A.$ Country $A$ is a small importer of good $x.$

In free trade, the cost of importing a unit of good X from country B is $$20$ per unit, and the cost of importing a unit of good $x$ from country $C$ is $$15$ per unit.

e$.$ Assume that country A and country $C$ form a free$-$trade area $($FTA$)$:

i$.$ After forming the free$-$trade group with country $C,$ determine the quantity of import of good $x$ by country $A.$

$[1$ mark$]$

ii$.$ Explain and calculate the trade$-$creation effects in country A due to the formation of the free$-$trade area.

$[2$ marks$]$

iii. Explain and calculate the trade$-$diversion effects in country A due to the formation of the free$-$trade areas.

$[2$ marks$]$

iv$.$ Explain and calculate the net welfare effects for country A due to the formation of the free$-$trade area.

$[2$ marks$]$

f$.$ Compare the net welfare effect for country A due to the formation of FTA in question $($d$)$ and $($e$).$

$[2$ marks$]$