Improvements in communication technology have allowed programmers from other country to provide programming services in the United States. This has effectively opened up a market to trade which was formerly purely a domestic market. The price charged in the international market is lower than in the U.S.

a.How will this affect the quantity of programming services demanded in the U.S.?

b.How will it affect how much programming is done by programmers in the U.S.?

c.How will this affect consumer and producer surplus in the programming market?

d. Can we tell whether this openness to trade has made the country better or worse off? If so, has it improved or worsened the total surplus generated by the programming market?