Before the North American Free Trade Agreement (NAFTA) gradually eliminated import tariffs on goods traded by the United States, Mexico and Canada, the autarky price of tomatoes in Mexico was below the world price and in the US was above the world price. Similarly, the autarky price of poultry in Mexico was above the world price and in the US was below the world price. Draw diagrams with domestic supply and demand curves for each country and each of the two goods. As a result of NAFTA, the US now imports tomatoes from Mexico and exports poultry to Mexico. How would you expect the following groups to be affected? a. Mexican and US consumers of tomatoes. Illustrate the effect on consumer surplus in your diagram.
b. Mexican and US producers of tomatoes. Illustrate the effect on producer surplus in your diagram.
c. Mexican and US tomato workers.
d. Mexican and US consumers of poultry. Illustrate the effect on consumer surplus in your diagram.
e. Mexican and US producers of poultry. Illustrate the effect on producer surplus in your diagram.
f. Mexican and US poultry workers.