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Consider a small country with the following demand and supply curves for wheat: Demand: =162 Supply: =1+ Suppose the world price of wheat is $8

Consider a small country with the following demand and supply curves for wheat:

Demand: =162

Supply: =1+

Suppose the world price of wheat is $8 per bushel.

a. How many bushels of wheat will this country import at the world price?

b. Suppose the country imposes a tariff of $1 per bushel. How many bushels of wheat will the country import with the tariff?

c. Calculate consumer surplus with and without the tariff.

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