1.(40 points)Demand for masks in US is characterized by, while supply is characterized by.Prior to 2020, there was a complete ban on imports of masks to US.The world price for masks is $16.

a.What was the equilibrium price and quantity for masks in US prior to 2020?

b.Draw the market for masks in US, making sure to label all axes, lines, and the equilibrium.

c.On the graph, mark the world price for masks.If US were to open to free trade, would it import or export masks?

d.How many masks would be imported?On the graph, label the amount of imports.

e.After opening to free trade, US decides to impose a $4 tariff on all imports.On the graph, draw the new post tariff domestic price of masks, and the amount of imports of masks.How many masks will we import under the tariff?

f.On the graph, draw the tariff revenue, and the deadweight loss associated with the tariff.

g.Calculate the amount of deadweight loss, and tariff revenue.

h.As the advisor to the president, you are asked to comment whether the tariff would hurt consumers more if the demand for masks was more elastic.What would you say?Explain briefly.