The nation of Textilia does not allow imports of clothing. In its equilibrium without trade, a T-shirt costs $30 and the equilibrium quantity is 5 million T-shirts. One day, after reading Adam Smith's The Wealth of Nations while on vacation, the president decides to open the Textilian market to international trade. The market price of a T-shirt falls to the world price of $20. The number of T-shirts consumed in Textilia rises to 6 million, while the number of T-shirts produced declines to 4 million. a. Illustrate in a graph the situation just described. Your graph should show all of the numbers. (10 marks) b. b. Calculate the change in consumer surplus, producer surplus, and total surplus that results from opening up trade. (Hint: Recall that the area of a triangle is.)(10 marks)

Question #1: (20 marks) The nation of Textilja does not allow imports of clothing. In its equilibrium without trade, a T-shirt costs 530 and the equilibrium quantityis 5 million T-shirts. One day, after reading Adam Smith's The Wealth of Notions while on vacation, the president decides to open the Textilian market to international trade. The market price of a T-shirt falls to the world price of 520, The number of I shirts consumed in Textilia ises to 6 million while the number of T-shirts produced declines to 4 million. illustrate in europe the situation just described. Your graph should show all of the numbers. (10 market calculate the fangs in consumer surplus, producer surplus, and total surplus that results from openinel adel thing. Recall that the area of a triangle is )( 10 marks)