The UK recently voted to leave the EU, often referred to as Brexit. Suppose the domestic market for food in the UK is described by: D (P) = 40 – 2P S(P) = 3P – 15 Equilibrium price is 11 and equilibrium quantity is 18 in the domestic market. Suppose (for simplicity) that the UK only trades with the EU and the EU price for food is Pworld = 8. Modelling the UK in the EU as having free trade, the UK is a food importer. a. Draw a supply demand graph with free trade, labelling the imports/exports, consumer surplus and producer surplus.

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