6. Effects of a tariff in a small nation Suppose Zambia is open to free trade in the world market for soybeans. Because of Zambia's small size, the demand for and supply of soybeans in Zambia do not affect the world price. The following graph shows the domestic soybeans market in Zambia. The world price of soybeans is Pw = $400 per ton, Throughout this problem, as ume that changes in trade policies in other nations do not significantly affect the world market for soybeans and that there are no tran dated with international trade in soybeans. Also assume that domestic supplies will satisfy domes and as much as poss before any exporting or importing takes place. On the following graph, use the green triangle (triangle symbols) to shade the area repress enting consumer surplus (CS) when the economy is at the free-trade equilibrium. Then, use the purple triangle (diamond symbols) to shade the area representing domestic producer surplus (PS). Domestic Supply 8 8 CS PS PRICE (Dollars per ton) 20 30 35 QUANTITY (Thousands of tons of soybeans) If Zambia allows international trade in the market for soybeans, it will import tons of soybeans. (Note: Be sure to enter the full value for your answer, accounting for the horizontal axis units.) Now suppose the Zambian government decides to impose a tariff of $40 on each imported ton of soybeans. After the tariff, the domestic price of a ton of soybeans will be S and Zambia will import tons of soybeans. Show the effects of the $40 tariff on the following graph. Use the grey line (star symbol) to indicate the world price plus the tariff. Then, use the green triangle (triangle symbols) to show the consumer surplus with the tariff and the purple triangle (diamond symbols) to show the domestic 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 triangles (dash symbols) to shade the areas representing the net loss or deadweight loss (DWL) caused by the tariff