3. Use Exhibit 5 to answer the following questions.

a. If free trade is allowed, what are the domestic quantity supplied, domestic quantity demanded, and the quantity imported?

b. If a $1 tariff is placed on this good, what are the domestic quantity supplied, domestic quantity demanded, and the quantity imported? C. What area corresponds to consumer and producer surplus before the tariff is applied?

d. What area corresponds to consumer surplus, producer surplus, and revenue after the tariff is applied? government

e. What area corresponds to the deadweight loss associated with the tariff?

f. Describe in words the sources of the deadweight loss from a tariff. g. What is the size of the tariff that would eliminate trade altogether (i.e., that would return the market to its no-trade domestic solution)?