6) (11pts) Market interventions: tariffs and quotas. Consider the domestic market for silver scooters (such as Razors ) with inverse domestic demand equal to P = 200-2Q. , and inverse domestic supply equal to P = 20 + Q a) (3pts) If the U.S. did not import these scooters, and instead relied completely on domestic supply, what would be the domestic U.S. equilibrium price of scooters, P*, and the domestic quantity purchased of scooters, Q*? Graph your answer on a large half-page graph, and calculate consumer surplus, producer surplus, and total social welfare in the market for scooters. (Find actual numbers using the 15*b*h formula for triangles.) b) (3pts) Now assume that the world price for scooters is $50 because they can be made more cheaply in Asia than in the U.S., and that the U.S. is free to import scooters with no tariff or quota barriers. What is the quantity demanded in the U.S. of scooters at the world price? What is the domestic quantity supplied? What is the level of imports? Calculate the new consumer surplus, producer surplus, and total social welfare in the market for scooters, and illustrate these on your graph (or on a new one). Has the level of social welfare increased with trade? Why? Explain carefully. c) (3pts) Let's pretend now that U.S. producers of scooters lobby Congress to impose a $10 tariff on imported scooters, increasing the price that domestic consumers must pay for scooters to $60. How does this $10 tariff affect consumer surplus, producer surplus, and social welfare? Illustrate on your graph and show your calculations using the triangle formula. (Remember to include tariff revenue when calculating social welfare!) d) (2pts) Finally, consider the difference in social welfare if Congress had imposed a quota on scooters instead of the $10 tariff. Specifically, what if Congress had imposed an import quota equal to 30 imported scooters? By how much would this have reduced the level of social welfare in the U.S. relative to your answer in (c)