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1. Welfare effects of free trade in an exporting country The following problem analyzes the Brazilian market for limes. The graph below shows the domestic supply and demand curves for limes in Brazil. Assume that Brazil's government does not currently permit international trade in limes. Use the black point (plus symbol) to denote the equilibrium price of one ton of limes and the equilibrium quantity of limes in Brazil without international trade. Next, use the green triangle (triangle symbol) to shade in the area that represents consumer surplus in equilibrium. Finally, use the purple triangle (diamond symbol) to shade in the area that represents producer surplus in equilibrium. 1000 Domestic Demand Domestic Supply 900 Equilibrium without Trade 800 700 600 Consumer Surplus PRICE (Dollars per ton) 500 400 Producer Surplus 300 200 100 50 100 150 200 250 300 350 400 450 500 QUANTITY (Tons of limes)Based on the information from the previous graph, absent international trade total surplus is $ The following graph shows the same domestic supply and demand curves for limes in Brazil. Now, suppose that the Brazilian government changes its stance on international trade, deciding to allow free trade in limes. The horizontal black line (Pw) represents the world price of limes at $800 per ton. Assume that Brazil's entry into the world market for limes has no effect on the world price and there are no transportation or transaction costs associated with international trade in limes. Also assume that domestic suppliers will satisfy domestic demand as much as possible before any exporting or importing takes place. Use the green triangle (triangle symbol) to shade in the area representing consumer surplus, and then use the purple triangle (diamond symbol) to shade in the area representing producer surplus. 1000 Domestic Demand Domestic Supply 900 Consumer Surplus 800 PW 700 Producer Surplus 600 PRICE (Dollars per ton) 500 400 300 200 100 0 50 100 150 200 250 300 350 400 450 500 QUANTITY (Tons of limes)When Brazil adjusts its trade policy to allow free trade of limes, the price of one ton of limes in Brazil becomes $800. At this price, tons of limes will be demanded in Brazil, and tons will be supplied by domestic suppliers. Therefore, Brazil will export tons of limes. Using the information from the previous tasks, complete the following table to analyze the welfare effect of allowing free trade. With Free Trade Without Free Trade ( Dollars) (Dollars) Consumer Surplus Producer Surplus When Brazil allows free trade, the country's producer surplus by $ , and consumer surplus by $ . Therefore, the net effect of allowing international trade on Brazil's total surplus is a of $