(Solved): Suppose Panama is open to free trade in the world market for oranges. Since Panama is small relative ...

Suppose Panama is open to free trade in the world market for oranges. Since Panama is small relative to the international market, the demand for and supply of oranges in Panama have no impact on the world price. The following graph shows the domestic market for oranges in Panama. The worldprice of a ton of oranges is Pw = $350.A-ZOn the following graph, use the green triangle (triangle symbols) to shade the area representing consumer surplus (CS) when the economy is at the free-trade equilibrium. Then, use the phiple triangle (diamond symbols) to shade the area representing producer surplus (PS).