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3. Welfare effects of a tariff in a small country Suppose New Zealand is open to free trade in the world market for wheat. Because of New Zealand's small size, the demand for and supply of wheat in New Zealand do not affect the world price. The following graph shows the domestic wheat market in New Zealand. The world price of wheat is PW = $250 per ton. 0n the following graph, use the green triangle (triangle symbols) to shade the area representing consumer surplus (CS) when the economy is at the free-trade equilibrium. Then, use the purple triangle (diamond symbols) to shade the area representing producer surplus (PS). 530 Domestic Demand Domestic Supply 3' 490 450 CS 410 1" 370 PS 330 290 PRICE (Dollars per ton) 250 210 170 130 0 15 30 45 60 75 90 105 120 135 150 QUANTITY (Tons of wheat) If New Zealand allows international trade in the market for wheat, it will import tons of wheat. Now suppose the New Zealand government decides to impose a tariff of $40 on each imported ton of wheat. After the tariff, the price New Zealand consumers pay for a ton of wheat is $ , and New Zealand will import tons of wheat. Show the effects of the $40 tariff on the following graph. Use the black line (plus symbol) to indicate the world price plus the tariff. Then, use the green points (triangle symbols) to show the consumer surplus with the tariff and the purple triangle (diamond symbols) to show the producer surplus with the tariff. Lastly, use the orange quadrilateral (square symbols) to shade the area representing government revenue received from the tariff and the tan points (rectangle symbols) to shade the areas representing deadweight loss (D WL) caused by the tariff. Domestic Demand Domestic Supply + World Price Plus Tariff PRICE (Dollars per ton) LA 8-0 H Government Revenue in 15 30 45 60 90 105 120 135 150 DWL QUANTITY (Tons of wheat) Complete the following table to summarize your results from the previous two graphs. Under Free Trade Under a Tariff (Dollars) (Dollars) Consumer Surplus Producer Surplus I Government Revenue 0 Based on your analysis, as a result of the tariff, New Zealand's consumer surplus V by $ , producer surplus V by $ , and the government collects $ in revenue. Therefore, the net welfare effect is a _v or