4-. This problem looks at the e'ects of trade policy in the U.S. oil market. The world price of oil is currently $3] per barrel. Use the graph to answer the questions which follow. The quantity is measured in billions of barrels. U.S. oil market Quantities in billions of barrels. l4 15 17 ll! 20 23 28 32 37 43 i7 Q a. Under free trade, U.S. suppliers would produce billion barrels; U.S. consumers would consume billion barrels; and the U.S. would billion barrels. import export b. While there is currently free trade in the U.S. oil market, there has been some debate as to ways to ease U. S. dependence on foreign oil. Suppose that the government decides to limit imports to 14 billion barrels. Under this quota, the price paid in the U.S. would be $ per barrel. U.S. suppliers would produce billion barrels; U.S. consumers would consume billion barrels. c. Instead of an import quota, suppose that the U.S. government sets a tariff of $9 per barrel. Under this tariff, the price paid in the U.S. would be 3 per barrel. U.S. suppliers would produce billion barrels; U.S. consumers would consume billion barrels; and the U.S. would billion barrels. import export. d. Assume no revenue from selling quota licenses. Color in on the graph the welfare loss relative to ee trade of the quota described in part b