Please answer below blanks and attached pictures. When China's clothing industry expands, the increase in world supply lowers the world price of clothing. Consider the effects this has on both an importer and an exporter of clothing.Suppose the following graph represents the market for clothing in Vietnam prior to the expansion of China's clothing industry. Vietnam is an ___ of clothing because the world price is ____ the domestic equilibrium price.Note: You will have to use green points (triangle symbol) and purple points (diamond symbol) to shade the consumer and producer surplus areas on the following graphs. There are two green points and two purple points per graph. Use either one point of both to most accurately indicate the areas. For example, if indicating the consumer surplus requires only one green point, leave the second one on the palette. Use the green point (triangle symbol) to shade consumersurplus in the Germany before China's clothing industryexpands. Then use the purple point (diamond symbol) to shproducer surplus.Price of ClothingMarket for Clothing in GermanyPrice of ClothingDomestic DemandDomestic SupplyQuantity of ClothingMarket for Clothing in GermanyDomestic DemandOn the following graph, use the green point (triangle symbolshade consumer surplus in the Germany after China's clothiindustry expands. Then use the purple point (diamond symbto shade producer surplus.Domestic SupplyWorld PriceQuantity of ClothingConsumer SurplusNew World PriceProducer SurplusConsumer SurplusProducer Surplusthe fall in the worldthe priOverall, exporting countriesprice of clothing, and importing countrieschange. Use the green point (triangle symbol) to shade consumersurplus in Vietnam before China's clothing industry expandsThen use the purple point (diamond symbol) to shade produsurplus.Price of ClothingMarket for Clothing in VietnamPrice of ClothingDomestic DemandQuantity of ClothingDomestic SupplyMarket for Clothing in VietnamDomestic DemandQuantity of ClothingWorld PriceOn the following graph, use the green point (triangle symbolshade consumer surplus in Vietnam after China's clothingindustry expands. Then use the purple point (diamond symbto shade producer surplus.Domestic SupplyANew World PriceConsumer SurplusProducer SurplusConsumer Surplus♦Producer Surplus(?)Suppose the following graph represents the market ofclothing in Germany prior to the expansion of China's clothindustry. Germany is an of clothing because the worldprice is the domestic equilibrium price.

The demand function reflects an individual’s willingness to pay for each unit of the quantity he or…

Answered: Please answer below blanks and attached…

Principles of Economics (MindTap Course List)

8th Edition

ISBN:9781305585126

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter7: Consumers, Producers, And The Efficiency Of Markets

Section: Chapter Questions

Problem 6PA

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Please answer below blanks and attached pictures. When China's clothing industry expands, the increase in world supply lowers the world price of clothing. Consider the effects this has on both an importer and an exporter of clothing. Suppose the following graph represents the market for clothing in Vietnam prior to the expansion of China's clothing industry. Vietnam is an ___ of clothing because the world price is ____ the domestic equilibrium price. Note: You will have to use green points (triangle symbol) and purple points (diamond symbol) to shade the consumer and producer surplus areas on the following graphs. There are two green points and two purple points per graph. Use either one point of both to most accurately indicate the areas. For example, if indicating the consumer surplus requires only one green point, leave the second one on the palette.

Use the green point (triangle symbol) to shade consumer
surplus in the Germany before China's clothing industry
expands. Then use the purple point (diamond symbol) to sh
producer surplus.
Price of Clothing
Market for Clothing in Germany
Price of Clothing
Domestic Demand
Domestic Supply
Quantity of Clothing
Market for Clothing in Germany
Domestic Demand
On the following graph, use the green point (triangle symbol
shade consumer surplus in the Germany after China's clothi
industry expands. Then use the purple point (diamond symb
to shade producer surplus.
Domestic Supply
World Price
Quantity of Clothing
Consumer Surplus
New World Price
Producer Surplus
Consumer Surplus
Producer Surplus
the fall in the world
the pri
Overall, exporting countries
price of clothing, and importing countries
change.

Use the green point (triangle symbol) to shade consumer
surplus in Vietnam before China's clothing industry expands
Then use the purple point (diamond symbol) to shade produ
surplus.
Price of Clothing
Market for Clothing in Vietnam
Price of Clothing
Domestic Demand
Quantity of Clothing
Domestic Supply
Market for Clothing in Vietnam
Domestic Demand
Quantity of Clothing
World Price
On the following graph, use the green point (triangle symbol
shade consumer surplus in Vietnam after China's clothing
industry expands. Then use the purple point (diamond symb
to shade producer surplus.
Domestic Supply
A
New World Price
Consumer Surplus
Producer Surplus
Consumer Surplus
♦
Producer Surplus
(?)
Suppose the following graph represents the market of
clothing in Germany prior to the expansion of China's cloth
industry. Germany is an of clothing because the world
price is the domestic equilibrium price.

Definition Definition Consumer surplus is the consumers' gain from trade. The consumer surplus is the area below the demand curve but above the equilibrium price, up to the equilibrium quantity. Producer surplus is the producer's gain from trade. The producer surplus is the area above the supply curve but below the equilibrium price, up to the equilibrium quantity. Consumer surplus is represented by Area A and producer surplus is represented by Area B.

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