a. (15 pts) Suppose the country imposes a 25% ad valorem (i.e., as a percentage of price) tariff on the good. Calculate the changes in quantities supplied, demanded, and imported, and the welfare effects of the tariff on suppliers, demanders, government, and the country as a whole. Use the labels to show your work. b. (10 pts) Now suppose that the economy is large and can impact the world price. Assume that if it chooses to impose a tariff of $2 per pound of the good, the world price will fall to $3 per pound. Calculate the terms of trade gain for the country. Does welfare for the country as a whole rise or fall as a result of the tariff? By how much? Show your work. P (S/pound) 10 9 8 7 654 3 NO 2 1 S 0 0 1 2 3 4 5 6 7 8 9 10 q (thousands of pounds I