Show transcribed image textIf Meekertown allows free trade, then it will import meekers since world price is less than domestic price…View the full answerTranscribed image text: 4. Winners and losers from free trade Consider the market for meekers in the imaginary economy of Meekertown. In the absence of international trade, the domestic price of a meeker is $35. Suppose that the world price for a meeker is $21. Assume that Meekertown is too small to influence the world price for meekers once they enter the international market. If Meekertown allows free trade, then it will Given current economic conditions in Meekertown, complete the following table by indicating whether each of the statements is true or false. Statement meekers. Meekertownian consumers were worse off without free trade than they are with it. Meekertownian producers were better off without free trade than they are with it. True False True True or False: When a country is too small to affect the world price, allowing for free trade will always decrease total surplus in that country, regardless of whether it imports or exports as a result of international trade. False
