Consider rst the free trade equilibrium. Solve for the quantity of cars consumed, the quantity that is supplied by the domestic rms, the quantity of imports, as well as the price per car paid by Acadia's consumers. (e) Acadia's government is considering the use of a specic tari of t to be levied on each car imported. On the same diagram from part (c), draw in an additional curve to illustrate how the use of this specic tari will shift the total supply curve faced by Acadia. (f) Following up on part (e), show that with the use of the specic tari t, the quantity of cars demanded in Acadia will be 800 (2/3)t, the market price of cars in Acadia will be 400 + (2/3)t, and the price that is paid to foreign suppliers of these cars will be = 400 (1/3)t. (g) Recall that the foreign export supply curve is given by: P = 2Q/3. i. Show that the foreign export supply elasticity is equal to 1. ii. By making use of the optimal tari formula, show that the optimal tari that the Acadian government should levy on imported cars is a specic tari of t = 300. (Hint: Make use of the expressions derived in part (f) of the question.)