2. (4 points) Suppose the domestic demand for t-shirts (in thousands) is represented by the equation P = 80 2Q and domestic supply for t-shirts (in thousands) is represented by the equation P = 5 + Q. a. Graph the domestic demand and supply for t-shirts on the gure on the next page. Suppose there is no opporttmity for international trade. What is the equilibrium price and quantity for t- shirts? Price Quantity (thousands) b. Now suppose there is international trade and the world price of t-shirts is $20. What is the quantity of t-shirts supplied domestically, and what is the quantity imported? 3. (4 points) a. In the setting from problem 2, calculate the domestic consumer and producer surplus when there is no trade (like in part a), and when there is trade (like in part b). b. Now suppose the governm-t imposes a $5 tariff on imported tshirts. Find the new equilibrium price and quantity demanded. Now what is the domestic consumer and producer surplus