Assume you work for the national government in a country called HOME. HOME is a large economy and is completely open to the world market i.e., it does not have import tariffs or any other form of trade policies in place to protect any of its industries from international competition. However, the automobile industry has been lobbying the government in the last months to implement a tariff on automobile imports. All markets in the country function well, i.e., there are no market failures. The government is considering the tariff proposal for future implementation. You have been appointed by the government to analyse the potential welfare impact of the tariff in case the government decided to implement it. To conduct this task please consider the following information: . If HOME was in autarky the domestic equilibrium price of a car would be $40. HOME is open to free trade, so HOME consumers currently pay the world price of cars, which is $20. . The specific tariff proposed by the automobile industry is $10 per car imported. However, based on estimations, the domestic price of cars after implementing the tariff would only increase to $25. This is because HOME is a large economy. The implementation of the tariff would affect international prices of cars, reducing the original world price to $15. . Current domestic supply of cars at free-trade price of $20 is 100 cars, while the domestic demand is 650 cars. . If the tariff was implemented, domestic supply at the new domestic price of $25 (new world price of $15 plus the tariff $10) would increase to 150 cars, while the domestic demand after tariff would decrease to 600 cars. c) (2 marks) What is the impact of the tariff on consumer surplus? Provide a numerical value corresponding to the loss or gain in surplus, and clearly label the area corresponding to the change in consumer surplus in the graph drawn in point (a). d) (2 marks) What is the impact of the tariff on government revenue? Provide a numerical value corresponding to the loss or gain in revenue, and clearly label the area corresponding to the change in government revenue in the graph drawn in point a). Assume you work for the national government in a country called HOME. HOME is a large economy and is completely open to the world market i.e., it does not have import tariffs or any other form of trade policies in place to protect any of its industries from international competition. However, the automobile industry has been lobbying the government in the last months to implement a tariff on automobile imports. All markets in the country function well, i.e., there are no market failures. The government is considering the tariff proposal for future implementation. You have been appointed by the government to analyse the potential welfare impact of the tariff in case the government decided to implement it. To conduct this task please consider the following information: . If HOME was in autarky the domestic equilibrium price of a car would be $40. HOME is open to free trade, so HOME consumers currently pay the world price of cars, which is $20. . The specific tariff proposed by the automobile industry is $10 per car imported. However, based on estimations, the domestic price of cars after implementing the tariff would only increase to $25. This is because HOME is a large economy. The implementation of the tariff would affect international prices of cars, reducing the original world price to $15. . Current domestic supply of cars at free-trade price of $20 is 100 cars, while the domestic demand is 650 cars. . If the tariff was implemented, domestic supply at the new domestic price of $25 (new world price of $15 plus the tariff $10) would increase to 150 cars, while the domestic demand after tariff would decrease to 600 cars. c) (2 marks) What is the impact of the tariff on consumer surplus? Provide a numerical value corresponding to the loss or gain in surplus, and clearly label the area corresponding to the change in consumer surplus in the graph drawn in point (a). d) (2 marks) What is the impact of the tariff on government revenue? Provide a numerical value corresponding to the loss or gain in revenue, and clearly label the area corresponding to the change in government revenue in the graph drawn in point a)