1. Suppose that the world price of oil is $28 dollars per barrel and the US can buy all the oil it wants at this price. Suppose also that the demand and supply schedules for oil in the US are as follows: Price ($ per barrel) US Quantity demanded US quantity supplied 26 65 35 28 60 40 30 55 45 32 50 50 34 45 55 A. Draw the supply and demand curves for the US (12 pts) B. With free trade in oil, what price will Americans pay for their oil? What quantity will Americans buy? How much of this will be supplied by American producers? How much will be imported? Illustrate total imports on your graph of the US oil market. (10 pts) C. Suppose the US imposes a $2 tax per barrel on imported oil. What quantity would Americans buy? How much of this would be supplied by American producers? How much would be imported? How much tax would the government collect? (8 pts)