This is an optional extra-credit question. Answer correctly…
This is an optional extra-credit question. Answer correctly and get up to 5 points to be added to your final exam’s score (if your score is lower than 100 points). In the graph, assume that B = 30 and D = 12. Suppose this market is closed to international trade (no trade). Given the information above: Calculate consumer surplus and producer surplus by showing your work! Suppose that now Wonderland enters the international market for sweaters (with trade), where one t-shirt now costs $15. Calculate the new values of consumer surplus and producer surplus by showing your work! Based on your calculations, who benefit and who lost (consumers or producers) when Wonderland entered the international market? Justify your answer! PS: This is a file upload question. You have to hand-write your solution in a piece of paper, take a picture and upload your file (or send me through Canvas Inbox or at haruko.muratainouye@chaffey.edu). Typed answers will not be accepted!