How to draw a diagram to illustrate the change in consumer and produce surplus, and

government revenue?

Question 1: Export Subsidies in a Small Economy Suppose that Foreign is a small economy. A single homogenous good, a USB adapter (in millions), is exported from Foreign at a world price of 2. Foreign's demand and supply function is given as follows. C2,; = 20 5P Q8 2 10 + 5P 1. Suppose that the Foreign country offers a export subsidy of 1. Draw a diagram to illustrate the change in consumer and produce surplus, and government revenue. 2. What is the numerical change in welfare in Foreign? Document any changes in consumer and producer surplus