The graph shows Spain's demand for oranges and the supply of oranges by growers in Spain.The world price of oranges is

1.00

a kilogram.Draw and label the world price line.Suppose there is free international trade.Draw a point to show the quantity of oranges bought by Spanish consumers and the price they pay. Label it 1.Draw a point to show the quantity of oranges supplied by Spanish producers and the price at which these oranges are sold. Label it 2.Part 2With free international trade, Spain produces

fewer

more

oranges than in the situation with no international trade and

exports

imports

some at the lower world price.