6 The table below shows hypothetical data for the Canadian market for watches, presuming this market is perfectly competitive. Quantity Demanded (D) Quantity Supplied (Sao) Price ($) (millions per year) (millions per year) 01:46:59 80 1. 4 1. 8 70 1. 6 1. 6 60 1. 8 1. 4 50 2. 0 1. 2 40 2. 2 1. 0 a. Draw a graph showing the domestic demand and supply curves for watches, D and Sdo, and the equilibrium point. Plot only the endpoints of the two curves, using the given tools In the graph below. Then indicate the initial equilibrium point with the applicable drop tool. Domestic Demand and Supply Curves for Watches 90 Tools 80 Demand Curvi Supply Curve 70 Line Tool Intial Outcome Price ($ per watch) 60 --o 50 Tariff Outcom 40 30 0.8 1.0 1.2 1.4 1.6 1.8 2.0 2.2 2.4 Quantity (millions of watches per year)In the absence of foreign imports, the equilibrium price in this market is $ and the equilibrium quantity is million watches. Enter your price responses as whole numbers and quantity responses rounded to 1 decimal place. b. If unrestricted foreign imports of watches are allowed at a constant world price of $50, then equilibrium price becomes $ quantity demanded is million, domestic quantity supplied is million, and the quantity imported is million. c. If a $10 tariff on imported watches is imposed then equilibrium price becomes $ , quantity demanded is million, domestic quantity supplied is million and foreign imports are million. Show the result of this tariff in the graph plotted above. Indicate the new equilibrium point with a tariff using the drop tool provided in the graph above. d. When comparing the $10 tariff with the case of freely available imports with no tariff, consumers | lose with a tariff, domestic producers benefit , foreign producers | lose , and the Canadian government benefits e. If rather than using a tariff the government imposes an import quota of 400,000 watches a year then, with the import quota, equilibrium price is now $ , quantity demanded is million, domestic quantity supplied is million and imports are million. Show the result of this quota in the graph plotted above. Using the line tool plot the two endpoints of a curve to show the Imposition of the quota. f. When comparing the import quota with the case of freely available imports with no tariff, consumers lose with a quota, domestic producers benefit @ and foreign producers | lose g. If given the choice of the $10 tariff or the 400,000 import quota, foreign producers would prefer the quota V