Home is a small country. Consider Home's demand and supply for wheat graphed above. In the no-trade equilibrium the price is 20 and the quantity is 62. The world price of wheat is 25. At the free trade equilibrium (with zero trade cost), Home produces 72 and consumes 57 units of wheat.Additional information is provided on the graph below.

For a. and b., calculate changes in Government Revenue, Consumer Surplus, and Total surplus between free trade equilibrium and each of the following scenarios. If you cannot solve for a numerical answer, provide qualitative answers with corresponding graphs (partial credit only).

a. (5 pts) Consider a per-unit production subsidy, PS=7.

A1. Change in GR =

A2. Change in CS =

A3. Change in TS =

b. (5 pts) Consider a per-unit export subsidy, ES=7, and Home also prohibits imports.

B1. Change in GR =

B2. Change in CS =

B3. Change in TS =

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