(Solved): The graph below shows the herting market for a small Scandinavan country, Wth no international trad ...

The graph below shows the herting market for a small Scandinavan country, Wth no international trade, in a state of autarky. a in the graph, idently the areas that represent consumer sumplus (CS) and producer surplus (PS) in the absence of international trade Instructlons: Use the took provded "C5" and "PS' to fusarate these areas on the graph Market for Herring (1) Now suppoce thes small courity opens its market to international trade, becoming an open economy Suppose the world price of ferring is \( \$ 2 \) per pound. D. In the graph betow, indicate the domestic quandry supplied \( \left(Q_{g}\right) \) and domestic quantity demanded \( \left(Q_{d}\right. \). Then identufy the areas that reprevent the new consumer surplus (CS) and new producer surplus (PS). Inatructions: Uos the tooks provided " \( \mathrm{O}_{\mathrm{s}} \) " and " \( \mathrm{Q}_{\mathrm{d}}{ }^{2} \) to indicate the donsestc quantly suppiled and domestic quantly demanded. Then use the took pronded "New CS" and "New PS" to flustrate these areas on the graph. Market for Herring (1) use the tool provded "Net Gain" to illustrate this area on the graph. Market for Herring (1) e. The economy ac a whole wil gsin because the increase in producer surptus exceeds the decine in consumer surplus the nowse in consumer surplus exceds tre decine in producer surplus. both producer surplus and consumer wirplis are incresaing there is an incresse in consumer surplus and producer surplus remains the same.