Urgent! Please Help!

Question 1: FREE TRADE TWO Country Model .................... 20 points S HOME WORLD ESIED P FOREIGN D Q Q traded Q (4 points) (a) Show and explain how derive the free trade world price. Then Show how output and consumption in each countly changes as we move to free trade. WORLD PRICE: HOME (Q5, Q\"): FOREIGN (Q5, Q\"): {4 points) (b) Show and explain how social surplus in each county changes as we move to free trade. Give the details and the intuition. HOME: FOREIGN Now suppose the SUPPLY curve in FOREIGN rises (eg moves down! to the right) {2 points) (e) Show how, and explain Why, the free trade world price changes because of the rise in FOREIGN supply. (2 points) ((1) What do we mean by the Terms of Trade (TOT) and why does an improvement (rise) in the ToT imply a rise in social sulplus'? (4 points) e) Show how social surplus in HONIE changes with this 'foreign supply shock'. Explain the details fully. Relate to changes in the Temzs of Trade. (4 points) 1) Show how social surplus in FOREIGN changes with this 'foreign supply shock'. Explain the details fully. Relate to changes in the Temzs of Trade