Thank you

PARTIAL EQUILIBRIUM MODEL P HUNEE P FOREIGN 1: ACTARCI-IY a) Depict Autarchy Prices and Output in HDIUEE and FOREIGN. Compare. b} Show the social surplus in each country. EG identifyr Consumer and Producer Surpluses. 1:} Explain why, in autarchy, the unregulated outcome (under perfect competition} maximizes social surplus. Prove that the claim is true. 2: FREE TRADE: now suppose we open to free trade. a) Depict the Excess DEMAND and SUPPLY curves. Then illustrate the freetrade equilibrium output, consumption, and importsu'rexports for HOME and for FOREIGN. Use the 3pane gure. 1:} Identify the new Consumer, Producer and Private Surpluses in Home and Foreign. Do they rise fall? Explain what is happening and why. 1:} Show and explain why both countries can Gain from Free Trade. Give the intuition. 3: FREE TRADE: Suppose Home's production supplyr curve rises (eg shifts right-own) a} Show what happens to Homes EDES curve. Explain b} What happens to 'eetrade prices, equilibrium output, consumption, and imports-{exports in each country. Show in a diagram and explain. 1'} Does HOME surplus rise? Show and explain. EG identify what happens to consumer and producer surpluses in Home. Relate to Terms OfTr-ade. 11} Does FOREIGN surplus rise? Show and explain. EG identifyr what happens to consumer and producer surpluses in Foreign. Relate to the Terms Omede