1.The following diagram is constructed to illustrate the effect of a tariff in a partial equilibrium like Figure 10.

X-axis is quantity of Clothing as representing all other goods except Food and Y -axis is quantity of Food. Suppose the international price of Clothing representing all other goods

except Food is $100.

(a)What is the point of free-trade equilibrium? Choose one from: A____ B_____ C______ D_______F_____ T________ T'_________

(b)After imposing 25% tariff, what is the level of domestic production of Food? Identify the point of production from Figure below and provide a quantitative answer from Figure 10 above in Question 2: Point of Production from Diagram below:________ Quantitative answer: Domestically produced quantity of Food after imposing 25 % tariff:___________

(c)Estimate the slope of Line 1 from diagram below:________

(d)Estimate the slope of Line 2 from below:__________

(e)Under free trade, national income measured in units of Food is equivalent to ________: Choose one from: OF____ OD_____ OC_____ OT_______OT'_______

(f)After this country imposed 25 % tariff on Food imports, this country's national income in Food units at world prices is equivalent to_______: Choose one from

OF____ OD_____ OC_____ OT_______OT'_______

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