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9. The graph below shows the car market in Mexico when Mexico places no restriction on the quantity of cars imported. The world price of

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9. The graph below shows the car market in Mexico when Mexico places no restriction on the quantity of cars imported. The world price of a car is $10,000. Prim (mm of dollars par car) ll 2 4 6 8 l0 |2 l4 Quanh'ty (millions afar: par rat) a. If the government of Mexico introduces a $2,000 tariff on car imports, what will be the price of a car in Mexico, the quantity of cars produced in Mexico, the quantity imported into Mexico, and the government's tariff revenue? b. If the government of Mexico introduces an import quota of 4 million cars a year, what will be the price of a car in Mexico, the quantity of cars produced in Mexico7 and the quantity imported? c. What argument might be used to encourage the government of Mexico to introduce a $2,000 tariff on car imports from the United States? Who Will gain and who will lose as a result of Mexico?s tariff

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