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C2. Answer this question according to Chapter 8 materials and tutorial discussion. Show your step- by-step calculation or a zero will be assigned. Let P be price and Q be quantity. (a) In Country A, the market supply curve is PA = 40 + 0.504 and the market demand curve is PA = 240 - 0.504. Plot the market supply curve S4 and the market demand curve DA for Country A in Graph 1. Suppose Country A does not trade with any country. Calculate the domestic equilibrium price Pa, quantity Qa, consumer surplus CSa, producer surplus PS4, and total surplus TSa. ( b ) In Country B, the market supply curve is PB = 20 + 0.50 and the market demand curve is PB = 180 - 0.50. Plot the market supply curve S and the market demand curve D for Country B in Graph 2. Suppose Country B does not trade with any country. Calculate the domestic equilibrium price Pa , quantity Qa, consumer surplus CSa, producer surplus PS2, and total surplus TSa. (c) Plot the export supply curve ES and the import demand curve ID for each country in Graph 3 to determine the equilibrium world price and trade flows. Who are the winners in each country and how much do they gain? Who are the losers in each country and how much do they suffer? How much overall benefit does free trade bring to each country? (a) 5 marks; (b) 5 marks; and (c) 10 marks Graph 1 - Country A P 240 LLLL LLLLLL LLLLLL. 220 LLLLJ. LLLLLLJJJ .L LLLI 200