Question 7 (10 marks)Suppose Demand in the country a is P=100- 2Q and supply is P=2Q and a world price 30 in the free trade market

Consider that we are in a situation of a negative consumption externality in country A with a constant value of -10 for every unit consumed.

(a) Compute welfare for country A in autarky (1 mark).

(b) Compute welfare for country A under free trade (1 mark). Does welfare increase or decrease with free trade (1 mark)? Which agents (consumers, producers) in country A would advocate for free trade (over autarky) (1 mark)? Why (1 mark)?