3. Welfare effects of a tariff in a small country Suppose Honduras is open to free trade in the world market for soybeans. Because of Honduras's small size, the demand for and supply of soybeans in Honduras do not affect the world price. The following graph shows the domestic soybeans market in Honduras. The world price of soybeans is Pw = $400 per ton. On the following graph, use the green triangle (triangle symbols) to shade the area representing consumer surplus (CS) when the economy is at the free-trade equilibrium. Then, use the purple triangle (diamond symbols) to shade the area representing producer surplus (PS). 680 Domestic Demand Domestic Supply 640 CS 600 560 620 PS 480 PRICE ( Dollars per ton) 440 400 380 320 280 15 30 45 60 75 90 106 120 1351 QUANTITY (Tons of soybeans) If Honduras allows international trade in the market for soybeans, it will import | tons of soybeans. Now suppose the Honduran government decides to impose a tariff of $40 on each imported ton of soybeans. After the tariff, the price Honduran consumers pay for a ton of soybeans is |$ . and Honduras will import tons of soybeans. Show the effects of the $40 tariff on the following graph.Use the black line (plus symbol) to indicate the world price plus the tariff. Then, use the green points (triangle symbols) to show the consumer surplus with the tariff and the purple triangle (diamond symbols) to show the producer surplus with the tariff. Lastly, use the orange quadrilateral (square symbols) to shade the area representing government revenue received from the tariff and the tan points (rectangle symbols) to shade the areas representing deadweight loss (DWL) caused by the tariff. (?) Domestic Demand Domestic Supply 840 80O World Price Plus Tariff 520 CS PRICE (Dollars per ton) 480 440 400 360 Government Revenue 320 15 30 45 60 75 90 105 120 135 150 DWL QUANTITY (Tons of soybeans) Complete the following table to summarize your results from the previous two graphs. Under Free Trade Under a Tariff (Dollars) "Dollars) Consumer Surplus Producer Surplus Government Revenue Based on your analysis, as a result of the tariff, Honduras's consumer surplus by $ . producer surplus by S . and the government collects |$ in revenue. Therefore, the net welfare effect is a of $ Grade It Now Save & Continue Continue without saving