Assume that the Phillippines 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 phillipiines is D=1300-25p and the supply curve is S=100+5p. Using graphical analysis please answer alb,c and d

A. Calculate the quantity supplied, quantity demanded and equilibrium imports when free trade prevails

B. Suppose an import quota limits imports to 600 tons of wheat. Calculate the production distortion loss, the consumption distortion loss, and the quota rents. Can 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. How does your answer in item "b" is related to the following statement bout U.S. tariffs on steel?

steel users will pay about $650,000 for each job created in the steel industry

D. Consider again the problem described in item "b" but assume that production yields a marginal social benefit (externality) of $5 for each ton of wheat produced. Can 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. What would the value of the optimal tool be?