Use the green triangle (triangle symbol) to shade consumer surplus, and then use the purple triangle (diamond symbol) to shade producer surplus. (? 1100 Domestic Demand Domestic Supply 1000 900 Consumer Surplus PW 700 Producer Surplus 600 PRICE (Dollars per ton) 500 400 300 200 100 0 35 70 105 140 175 210 245 280 315 350 QUANTITY (Tons of lemons) When Kenya allows free trade of lemons, the price of a ton of lemons in Kenya will be $800. At this price, tons of lemons will be demanded in Kenya, and tons will be supplied by domestic suppliers. Therefore, Kenya will export tons of lemons. Using the information from the previous tasks, complete the following table to analyze the welfare effect of allowing free trade. Without Free Trade With Free Trade "Dollars) (Dollars) Consumer Surplus Producer Surplus When Kenya allows free trade, the country's consumer surplus by $ and producer surplus by $ . So, the net effect of international trade on Kenya's total surplus is a * of $1. Welfare effects of free trade in an exporting country Consider the Kenyan market for lemons. The following graph shows the domestic demand and domestic supplyr curves For lemons in Kenya. Suppose Kenya's government currently does not allow international trade in lemons. Use the black point { plus symbol) to indicate the equilibrium price ola ton of lemons and the equilibrium quantity of lemons in Kenya in the absence of international trade. Then, use the green triangle { triangle symbol) to shade the area representing consumer surplus in equilibrium. Finally, use the purple triangle (diamond symbol) to shade the area representing producer surplus in equilibrium. 1100 Domestic Demand Domestic Supply --I- 1 U 00 ' 9m] EqUIIIbrIum Without Trade 3110 h E\" B a mu Consumer Surplus E g 5110 *0 D Q 8 5\"" Producer Surplus E '1 4110 3110 2110 11m U 35 m 105 140 175 210 245 280 315 3-50 QUANTITY [Tums of lemons} Based on the previous graph, total surplus in the absence of international trade is . Now suppose the Jordanian government decides to impose a tariff of $120 on each imported ton of oranges. After the tariff, the price Jordanian consumers pay for a ton of oranges i5 , and Jordan will import E tons of oranges. Show the effects of the $120 tariff on the following graph. Use the black line (plus symbol) to indicate the world prloe plus the tarri Then, use the green polnts (triangle symbols) to show the consumer surplus with the tarr'l'iF and the purple triangle (dranmnd symbols) to show the producer surplus with the tariff. Lastly, use the orange quadrilateral (square symbols) to shade the area representing government revenue received from the tariff and the tan points (rectangle symbols) to shade the areas representing deadwelght loss (DWL) caused by the tari. . 1230 Domestic Demand Domestic Supply 1220 A World PI'ICE Plus Tari 1160 1101] LA E\" E 5.: 111-10 - (35 D. 1-: g 910 M D 9, 920 PS l1 . .qu sue Govemmeni Revenue no L1: 610 u 25 5:] 75 1:11] 125 150 175 200 225 250 DWL QUANTITY (Tons of oranges)