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This problem asks you to examine the welfare effects of opening trade between the two countries. Please draw new graphs (separate from question 1). a.
This problem asks you to examine the welfare effects of opening trade between the two countries. Please draw new graphs (separate from question 1). a. Label the area in your graph that represents consumer surplus in Country A before trade. What is the 93 value of consumer surplus? b. Label the area in your graph that represents producer surplus in Country A before trade. What is the $ value of producer surplus? c. Label the area in your graph that represents consumer surplus in Country A after the opening of trade with the ROW. What is the $ value of consumer surplus? d. Label the area in your graph that represents producer surplus in Country A after the opening of trade with the ROW. What is the $ value of producer surplus? e. How much does Country A gain or lose from trade? Country A consumers? Country A producers? Give S values
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