02 Australia is a major world wine exporter. Suppose that the drought destroys much of
the grape harvest in Australia
a) What

Q.2 Australia is a major world wine exporter. Suppose that the drought destroys much of the grape harvest in Australia.a) What effect does this shock have on the world price of wine? Illustrate and explain the effect on consumer surplus, producer surplus and total surplus in Poland which is importing wineb, b) Draw a diagram to analyse how this change in price affects consumer surplus, producer surplus and total surplus in a nation that exports wine, such as Spain. Summarise your finding in the tablec, c) Who are the winners and losers? Is Poland better off? Is Spain better off?

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