For this problem, suppose that Domestic has a market demand curve for crude oil of P = 100 - Q and a market supply curve of P = 3xQ. Domestic is considering an import tariff of $30.

1)Domestic's import demand curve takes the form P = A - B x Q whereA is ________. Fill in the blank, read surrounding text. and B is _____. Fill in the blank, read surrounding text. . Round to two decimal places (e.g., 7.555 becomes 7.56)

2)Suppose that Domestic is a small country facing a foreignexport supply curve of P = 30. If Domestic uses a tariff, it will import ________. Fill in the blank, read surrounding text. units and tariff revenue will be __________.

3)Suppose that Domestic is a large country facing a foreignexport supply curve of P = 10 + Q. If Domestic does not use a tariff, it will import ______. Fill in the blank, read surrounding text. units. If Domestic uses a tariff, it will import __________. Fill in the blank, read surrounding text. units and tariff revenue will be __________. Fill in the blank, read surrounding text. .

4)Given the tariff revenues you calculated in the previous two parts, we expect that welfare gains are:

• A.

Higher in the first case

• B.

Higher in the second case

• C.

The same in both cases