7

12. Refer to the figure above. With the import tariff, what is the total quantity of imports and the a. Imports =10,000 units; DWL =$5,000 b. Imports =30,000 units; DWL =$50,000 c. Imports =30,000 units; DWL =$45,000 d. Imports =30,000 units; DWL=$15,000 13. Refer to the figure above. Producer surplus with the tariff changes by how much compared to producer surplus under free trade? a. $50,000. b. $55,000 c. $90,000, d. $150,000 14. Suppose that the production of a $30,000 auto in Canada requires $10,000 worth of steel. The Canadian nominal tariff rates for importing these goods are 25 percent for autos and 10 percent for steel. Given this information, the effective rate of protection for the Canadian auto industry is approximately: a. 15 percent b. 32 percent c. 48 percent d. 67 percent