申論題

一、Assume that Country A is a small open economy. It is an importer of cars. There are no trade restrictions. The consumers in country A buy 1,000 cars per year, of which 400 are produced domestically and 600 are imported.

 (一) Assume that a technological advance in foreign car manufacturers causes the world price of car to fall by $50. After the fall in price, consumers buy 1,200 cars, of which 200 are produced domestically and 1,000 are imported. Calculate the change in consumer surplus, producer surplus, and total surplus caused by the price fall. (10 points)