3. Use the following information on the supply and demand for oil in the hypothetical country Economica to answer the questions below. Assume that the demand and supply curves are linear. Domestic Domestic Price ($) Demand Supply 0 200 0 20 180 30 40 160 60 60 140 90 80 120 120 100 100 150 120 80 180 140 60 210 160 40 240 180 20 270 200 0 300 Assume that Economica is a small country and that the world price of o0il is $40 per barrel. a. Calculate producer and consumer surplus under autarchy (no trade). b. Calculate producer and consumer surplus assuming free trade. c. Calculate the gains from trade. d. Draw the import demand and export supply curves for Economica. Show the coordinates of at least two points on the import demand curve. Use may use the template at the end of the problem set or draw your own graph. Now assume that Economica enacts a $20 tariff on oil. e. What is the price of 0il in Economica? Calculate the effect of the tariff (the difference between the amount with the tariff and wunder free trade) on each of the following. You may answer either algebraically or graphically. f. Producer surplus Consumer surplus Government tariff revenue Consumption deadweight loss Production deadweight loss Oil imports @ Domestic o0il production U B 5