economics

3. Weifare effectis of a tariff in a smalf countiry Suppase Guatemaia is open to free trade in the world market for oranses. Since Guatemata is smadi relative to she internationat market, the demand far and wupply of oranges in Guatemala have no impact on the woeld price. The following graph shows the domestic market for oranges in Cuatemala. The morld price of a ton of oranges is P=$350. On the folswing graph, use the green triangle (triangle symbobs) to shahe the area represencing consumer surplus (GS) when the eccinemy is at the free-trade equlbbrim. Thes, inse the purple triangle (diamond symbols) to shate the area representing froducer surplus (Ps). fecause Cuotemate partiepstes in international trade in the market for oranges, it will import tons of eranges. Meme mupgase the Guatemelan government dedies to impose a fenff of $40 en each imported ten ef oranges. Under the tariff, the price Guateinalan conaumers pay for a ben of oranges becomes and Guateriesa will impoit tons ef aranges. Uie the folcowing oraph to shose the e"focts of the 940 tariff. Uoe the hifading graph to show the eftect of the s4s tarif. representing deedwhight kas (owt) cavsed ty the lanif, Coityplete the folueing Rabie fo mammartae phur resues fiom the provous twe graphi. (2) fquebenting deatwejght lons (owl) cauked at the terth ( Wist froe fua Ta-t * sy if a prodveir aurfus br if a and ithe government colects 1