South Africa produces textiles. As a trade policy to enhance exports of textiles, the South African government introduces a subsidy on textiles. The autarky price of a ton of textiles is R40, and domestic production and consumption of textiles is 60 tons. The free trade price of textiles is R45. Represent this scenario in a well-drawn diagram and explain with the aid of the diagram, the impact of a R10 subsidy on each unit of textile

South Africa produces textiles. As a trade policy to enhance exports of textiles, the South African government introduces a subsidy on textiles. The autarky price of a ton of textiles is R40, and domestic production and consumption of textiles is 60 tons. The free trade price of textiles is R45. Represent this scenario in a well-drawn diagram and explain with the aid of the diagram, the impact of a R10 subsidy on each unit of textile