12.11 International trade by a large country 11.10 In our analysis of tariff's we assumed that the country in question faced a perfectly elastic supply curve for imports. Now assume that this country faces a positively sloped supply curve for imported goods.

a. Show graphically how the level of imports will be determined.

b. Use your graph from part

(a) to demonstrate the effects of a tariff in this market.

c. Carefully identify the sources of the various changes in consumer and producer surplus that are brought about by the tariff in part (b).

d. Show how the deadweight losses brought about by the tariff in this case will depend on the elasticity of demand and the elasticities of supply of domestic and imported goods.