3. Welfare effects of a tariff in a small country Suppose New Zealand is open to free trade in the world market for oranges. Because of New Zealands small size, the demand for and supply of oranges in New Zealand do not affect the world price. The following graph shows the domestic oranges market in New Zealand. The world price of oranges is = $800 per ton. *( Please do graphs as well thank you!!! Also can you please bold the answers!!! Greatly appreciated.)

3. Welfare effects of a tariff in a small country Suppose New Zealand is open to free trade in the world market for oranges. Because of New Zealand's small size, the demand for and supply of oranges in New Zealand do not affect the world price. The following graph shows the domestic oranges market in New Zealand. The world price of oranges is Pw-$800 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). 1700 1600 1500 1400 1300 1200 1100 Domestic Demand Domestic Supply CS PS 1000 900