The graph below shows the market for coffee in Small Republic. The horizontal line shows the world price of coffee. P (S/ton) $2,000 $1,800 World price 100 140 210 Q (tons) If international trade is allowed in Small Republic, will it a. import coffee or export coffee? Why? b. How much coffee will Small Republic im port/export? Explain who wins and who loses in Small Republic when C. international trade is allowed compared to when it is not. d. How do you reconcile your answer in (c) with the statement generally made by most economists: "free trade is better than no trade."

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