Austria is one of the small European Union countries. The Austrian economy is heavily dependent on foreign trade. Pedometer is one of the new and minor commodity produced and consumed in Austria. Below are the demand and supply functions of pedometer: Qd=300-12P Qs= -100+8P Where Q denoted as quantity of pedometer and P denoted as price. Austria allowed to import the pedometer from the United States (US) or United Kingdom (UK) at lower prices because Austria has comparative disadvantage in producing the pedometer. The free trade prices of pedometer in US and UK are $15 and $16 accordingly. (i) Austria imposed 15% of import tariff to the imported pedometer from US and UK due to international trade policies. Numerically show the welfare loss after imposition of tariff on US and UK. (10 marks) (ii) Refer to (i), graphically explain the imposition of an import tariff on Austrias domestic demand and supply, trade, and welfare effects as compare to free trade on imports from US and UK by using partial equilibrium analysis. (12 marks) (iii) After 2 years of 15% tariff imposition with US and UK, Austria has agreed upon to have a free trade with US only. Briefly explain whether this free trade agreement with US leads to trade creation or trade diversion by using an appropriate diagram. (12 marks) (iv) Pedometer production is considered as new industry, in which this industry still in early stages of production. Austria tend to protect the pedometer industry by using tariff imposition on pedometer. Explain why Austria protecting the pedometer industry? (6 marks)