Consider the diagram below for soybeans grown in Farmland. 70 Domestic Supply World Price PRICE (Dollars per unit of coffee) Domestic Demand 15 15 20 QUANTITY (Units of cofee) If Farmland decided to export soybeans; 1. What would the change in producer surplus be? See Figure 2 page 170 2. What would the change in consumer surplus be? See Figure 2 page 170 3. Is Farmland as a whole better off? Why? See Figure 2 page 170 Consider the domestic market for wool socks in Knitville below. Domestic Supply Domestic Demand PRICE World Price + Tariff E /D World Price 4 6 6 7 8 9 10 11 12 QUANTITY 1. Without a tariff what is the total quantity of wool socks imported? See Figure 4 page 174 2. What happens to the amount of wool socks imported after the tariff is imported? See Figure 4 page 174 3. What is the deadweight loss from implementing the tariff? See Figure 4 page 174 4. Is knitland as a whole better off with the tariff? Why? See Figure 4 page 174