Consider the following hypothetical information pertaining to a country's imports, consumption, and production of T-shirts following the removal of the MFA quota:

a. Graph the effects of the quota removal on domestic consumption and production.
b. Determine the gain in consumer surplus from the removal of the quota.

c. Determine the loss in producer surplus from the removal of the quota.
d. Calculate the quota rents that were earned under the quota.
e. Determine how much the country has gained from removal of the quota.

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Without MFA (Free Trade) $2.00 $2.00 125 50 75 With MFA World price (/shirt) Domestic price ($/shirt) Domestic consumption (million shirts/year) Domestic production (million shirts/year) Imports (mllion shirts/year) $2.00 $2.50 100 75 25 Price Price 2.50. b cd b + 2.00... 50 75 100 125 Quantity 25 75 Import (a) Home market (b) Import market