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Domestic Demand Domestic Supply 480 CS 430 400 PS 370 340 PRICE (Dollars perton) 310 280 250 220 190 20 40 60 80 100 120
Domestic Demand Domestic Supply 480 CS 430 400 PS 370 340 PRICE (Dollars perton) 310 280 250 220 190 20 40 60 80 100 120 140 160 180 2 QUANTITY (Tons of soybeans) Because Zambia participates in international trade in the market for soybeans, it will import tons of soybeans. Now suppose the Zambian government decides to impose a tariff of $60 on each imported ton of soybeans. Under the tariff, the price Zambian consumers pay for a ton of soybeans becomes and Zambia will import tons of soybeans. Use the following graph to show the effects of the $60 tariff.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 (DWL) caused by the tariff. 490 Domestic Demand Domestic Supply 460 World Price Plus Tariff 430 400 CS 370 340 PRICE (Dollars perton) 310 PS 280 PW 250 Government Revenue 220 190 20 40 60 80 100 120 140 180 180 200 DWL QUANTITY (Tons of soybeans)Complete the following table to summarize your results from the previous two graphs. With Free Trade With a Tariff (Dollars) (Dollars) Consumer Surplus Producer Surplus Government Revenue Based on your analysis, as a result of the tariff, Zambia's consumer surplus by 5 producer surplus by 5 and the government collects |S in revenue. Therefore, the net welfare effect is a lot of
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