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Figure 2 illustrates the calculator market for Mexico, assumed to be a small nation that is unable to influence the South Korean (world) price. Assume the South Korean price to be $60 per calculator. Figure 2. Effects of an Export Subsidy 160 SMexico 140 120 100 80 60 Ssouth Korea 40 20 DMexico 10 12 14 Q (i) With free trade, Mexicans attain $. of consumer surplus from the availability of calculators, while Mexican producer surplus equals $ (ii) To help its firms further penetrate export markets, suppose the South Korean government provides them a production subsidy of $20 per calculator. With the subsidy, South Korean firms charge a price of S and export calculators to Mexico. (iii) What is the impact of South Korean subsidy on the Mexican manufacturers? (Hint: what is the change in their producer surplus?). (iv) What is the overall impact of subsidy on the producers and consumers as a whole? (Hint: Welfare gain or welfare loss and how much?). (v) What is the impact of South Korean subsidy on the Mexican consumer? (Hint: what is the change in their consumer surplus?)