a. Using the figure above determine the value of the following for the importing country: -Producer surplus before and after trade -Consumer surplus before and after trade -Net changes in producer and consumer surplus -Net changes in total surplus

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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I have no clue on part a. Please answr a) Thanks!

1. Use the following figure to answer to the questions:
A. The U.S.
Motorbike Market
B. International
Motorbike Market
C. The Rest of the World's
Motorbike Market
Price
($/unit)
Price
Price
($/unit)
($/unit)
Sus
2,000
2,000
U.S. pretrade
price
World price
with trade
Exports
St
F
1,000
B
1,000
1,000
Imports
700
700
Dus
Dm
Df
Quantity
(thousands)
75 Quantity
(thousands)
15
40
65
Quantity
(thousands)
50
25
50
Sus = U.S. supply
Dus = U.S. demand
S = Rest-of-world supply of exports
(Sx = Sf- D;)
Dm = U.S. demand for imports
(Dm = Dus - Sus)
Sf = Rest of world's supply
Df = Rest of world's demand
a. Using the figure above determine the value of the following for the importing country:
-Producer surplus before and after trade
-Consumer surplus before and after trade
-Net changes in producer and consumer surplus
-Net changes in total surplus
b. Using the figure above determine the value of the following for the exporting country:
-Producer surplus before and after trade
-Consumer surplus before and after trade
-Net changes in producer and consumer surplus
-Net changes in total surplus
Transcribed Image Text:1. Use the following figure to answer to the questions: A. The U.S. Motorbike Market B. International Motorbike Market C. The Rest of the World's Motorbike Market Price ($/unit) Price Price ($/unit) ($/unit) Sus 2,000 2,000 U.S. pretrade price World price with trade Exports St F 1,000 B 1,000 1,000 Imports 700 700 Dus Dm Df Quantity (thousands) 75 Quantity (thousands) 15 40 65 Quantity (thousands) 50 25 50 Sus = U.S. supply Dus = U.S. demand S = Rest-of-world supply of exports (Sx = Sf- D;) Dm = U.S. demand for imports (Dm = Dus - Sus) Sf = Rest of world's supply Df = Rest of world's demand a. Using the figure above determine the value of the following for the importing country: -Producer surplus before and after trade -Consumer surplus before and after trade -Net changes in producer and consumer surplus -Net changes in total surplus b. Using the figure above determine the value of the following for the exporting country: -Producer surplus before and after trade -Consumer surplus before and after trade -Net changes in producer and consumer surplus -Net changes in total surplus
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