(Solved): Consider the Kenyan market for lemons. The following graph shows the domestic demand and domestic s ...

Consider the Kenyan market for lemons. The following graph shows the domestic demand and domestic supply curves foc lemons in Kenya. Suppose Kenya's government citremby does net allaw international trade in lemons. Use the biack point (plus symbol) to indicate the equibibrium price of a ton of lemons and the equilibrium quantity of lemons in Kenya in the absence of intemational 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. 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 lemans in Kenya. Suppose that the Kenyan government changes its international trade policy to allow free trade in lemons. The horizontal black line (Pw) represents the worlid price of lemons at sboo per ton. Assume that Kenya's entry into the world market for lemons has no elfect on the world price and there are no transpartation or transaction costs associated with international trade in lemons. Also assume that domestic suppliers will satisfy domestic demand as much as possible betore any exporting or importing takes place. Use the green triangle (triangle symbol) to shade consumer surplus, and then use the purple triangle (diamond symbol) to shade producer surplus. When Kenya allows free trade of lemons, the price of a ton of lemons in Kenya will be \( \$ 300 \). At this price, tons of lemens will be demanded in Kenya, and tons will be supplied by domestic suppliers. Therefore, Kenya will export tons of lemens. Using the information from the previous tasks, compiete the following table to analyze the weifare effect of alliowing free trade. When Kenya allows free trade, the country's consumer surplus: . So, the net effect of international trade on Kenya's total surplus is a