Assume that international trade has been established. Further, assume now that the home country has imposed a $2 tariff on imports of the goods.The new value of consumer surplus is:The new value of producer surplus is:The government revenue from the tariff is: Assume that international trade has been established. Further, assume now that instead of a tariff, the home country has imposed a 4 unit quota on imports of the good. Also assume that exporting firms have organized into a monopoly.The total welfare loss (i.e. the deadweight AND revenue losses) to the domestic country from the quota is:

The figure below depicts the domestic market for a particular good. The curve labeled S represents domestic supply. The curve labeled D represents domestic demand. The line labeled Pw is the world price of the good. 20 S 18 16 14 12 Price 10 8 6 Pw 4 2 0 0 2 4 6 8 10 12 14 16 18 20 Quantity