Explain the concept of "effective rate of protection.\" a. 'Wnat does the effectiye rate of protection on final goods depend upon and how? b. 'Waat would be the effective rate of protection on bicycles in China if China places a 50% tariff on bicycles= which have world price of $200= and no tariff on bike components, which together have a world price of $100? c. In what way does the effective rate of protection analysis help to illuminate these policy issues: i. Deepening of production in LDCs. ii. Escalation of tariff rates by degree of processing in industrial countries. The Home country is small and unable to affect world prices. It imports peanuts at a price of $10 per bag. The demand curve is D = 400 -lOP and the supply curve is S = 50 5P. a. Determine and show on a graph the free trade equilibrium. b. Determine and show graphically the impact of imposing an import quota of 50 bags of peanuts. In particular, graph and determine the impact on: domestic price; quota rents; consumption distortion; production distortion