answer a,b, c and d of essay a

Essay A. (30 points Mandatory) Assume that the Philippines is a small country, unable to affect world prices. It imports wheat at a price of $15 per ton (unit of weight}. The demand curve in the Philippines is D=1300 - 25F, and the supply curve is S=10IJ + 5P. Using a graphical analysis based on lChapter 9 of our textbook, please answer the following questions: a) {10 points} Calculate the quantity supplied, quantity demanded, and equilibrium imports when free trade prevails. b) {10 points) Suppose an import quota limits imports to 600 tons of wheat. Calculate the production distortion loss, the consumption distortion loss, and the quota rents. lCan the application of quotas improve welfare in the Philippines relative to free trade? Could the application of a tariff improve welfare relative to free trade? c) {5 points} How does your answer in item \"b\" is related to the following statement about US. tariffs on steel? (Note: do not forget to identify the areas of your graph as part of your answer, and apply your graph for a different country and product} {Hufbauer and lung (2013], the Peterson Institute for [ntemational Economics): \"Our arithmetic is stark. Steel tariffs will boost rm pie-tax earnings by $2.4 billion and create about 3,?00 jobsover $2?0,000 of pro-tax prots for each job. Steel users will pay an additional $512? billion for more expensive domestic steel, thanks to protection. In other words, steel users will pay about $650,000 for each job created in the steel industry." d) {5 points} Consider again the problem described in item \"b\" but assume that production yields a marginal social benet (extemality) of $5 for each ton of wheat produced. lElan the application of quotas improve welfare in the Philippines relative to free trade? Explain what policy (tariffs, quotas, VERs, consumption tax, production subsidies, etc.) would be optimal to maximize welfare. 1What would the value of the optimal tool be