Using the infomauon rm the previous tasks, complete the followlng table to analyze the welfare e'eot of allowing 'ee trade.
Withnut Free Trade with Free Trade
(Millions of dollars) (Millions of dollars)
Consumer Su I'PIIII 15 J 2.4 J
Producer Surplus 15 f
Attempts: 1 5 Keep the Highest: 3m
.2. Winners and losers from free trade
Consider the market for meekers in the imaginaryr economy of Meekerbown. In the absence of inbemational trade, the domestic pride of a meeker is
$32. Suppose that the world price fo
attempts: l:|:l:l lteepthe Highest: le
1. Welfare eeete effree trade In on experllnp country
coneder the New Zealand market for lemons.
The following graph shows the domestic demand and domestic supply curves for lemons in New Zeala nd. Suppose New Zealan
True or False: when a mum is too small to affect me world price, allowing for free bade will never increase total su mlm in that mum, regardless
of whener it Imports or experts as a result of Intematlnnal wade.
men New zealand allows line trade of lemons, Hie price of a ton of lemma in New Zaalalid will he won. At ijiis prim, _f tons of
ms will he demanded In Hm malaria, and _u\' inns will be supplied by dnmc suppliers. Thu-efnre, Haw Zealand will