Question

(a) Suppose Ireland moves from autarky to free trade. Ireland imports shoes under free trade. Show...

(a) Suppose Ireland moves from autarky to free trade. Ireland imports shoes under free trade. Show graphically the change to domestic Irish consumer surplus, producer surplus and total surplus.

(b) Suppose South Africa moves from autarky to free trade. South Africa exports machinery under free trade. Show graphically the change to domestic South African consumer surplus, producer surplus and total surplus.

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