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Consider the Kenyan market for lemons

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Consider the Kenyan market for lemons. The following graph shows the domestic demand and domestic supply 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 equilibrum price of a 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 1000 Domestic Demand Domestic Supply + 500 000 Equilibrium without Trade 700 60D Consumer Surplus PRICE Dolars per tot 500 400 Producer Surplus 100 200 100 0 50 100 150 200 250 300 350 400 450 500
1000 Domestic Demand Domestic Supply 900 NOD Equilibruns without Trade 700 500 Consumer Surplus (ut also 500 400 Producer Surplus 300 200 100 0 60 400 450 500 100 150 200 250 300 350 QUANTITY (Tons of lemons) Based on the previous graph, total surplus in the absence of international trade is $ The following graph shows the same domestic demand and supply curves for lemons in Kenya, Suppose that the Kenyan government changes its international trade policy to allow free trade in lemons. The horizontal blackline (Pw) represents the world price of lemons at $800 per ton. Assume that Kenya's entry into the world market for lemons has no effect on the world price and there are no transportation or transaction costs associated with international trade in lemons. Also assume that domestic suppliers will satisfy domestic demand as much as possible before any exporting on importing takes place.
Use the green triangle (triangle symbol) to shade consumer surplus, and then use the purple triangle (diamond symbol) to shade producer stirplus. 1000 Domestic Demand Domestic Supply 500 Consumer Surplus w 700 600 Producer Surplus PRCE Dolars perton 500 > 400 300 200 100 0 0 50 100 150 200 250 300 350 400 45000 QUANTITY (Tons of lemons) tons of lemons will be When Kenya allows free trade of lemons, the price of a ton of lemons in Kenya will be $800. At this price, demanded in Kenya, and tons will be supplied by domestic suppliers. Therefore, Kenya will export lemons tons of
Using the information from the previous tasks, complete the following table to analyze the welfare effect of allowing free trade. Without Free Trade (Dollars) With Free Trade (Dollars) increases Consumer Surplus Producer Surplus decreases and producer surplus by When Kenya allows free trade, the country's consumer surplus by So, the net effect of international trade on Kenya's total surplus is a