Question: {3 points] {2 points} {5 points] Twocountry model with EXPORT QUOTA: use the functions ahove. Assume the importer does not impose any tariff or quota.

{3 points] {2 points} {5 points] Twocountry model with EXPORT QUOTA: use the functions ahove. Assume the importer does not impose any tariff or quota. a] Suppose the exporter imposes an export quota of 31] units. . Calculate I the new equilibrium world price. {which is the importer's domestic price.) I The exporter's domestic prices - the quota price. b) Find the change in Social Surplus in each country relative to free trade. Give details on changes to CS and PS. Recall that quota rents need to he included in social surplus EG: SEEK? = {C5 + PS] + Quota Rents [I] Find the enporter's optimal quota (to the nearest whole number} given the importer has free trade. Show your work

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