1. Work through the effects on the domestic market of first opening to trade and then imposing a tariff on the imported good 5 domestic domestic a. The domestic supply and demand curves are shown. Identify the domestic market equilibrium P and O ifthe market is closed to trade. b. Suppose the country opens completely to trade (no tariff or quota). Assume that demand in this country is a very small part of world demand and production (so that world supply appears to be highly elastic from the perspective of the importing country). Add the corresponding world supply curve assuming that this is an importing country (i.e., that world price is much lower than the domestic price) i. Identify total quantity traded, quantity supplied domestically and imported. ii. What are the effects on consumer and producer surplus (and therefore domestic employment in this industry)