In the American market for ice cream, both American-made and European-made are sold

yogurt. Domestic producers have complained that foreign producers are "dumping" cheap yoghurt on the US market for 60 usd liters. The authorities are therefore considering

impose tariffs to protect US manufacturers. Domestic demand and supply are

as follows:

QN = 50,000 - 500P

QN = 6,000 + 150P

Where Q is tons of yogurt per year and P is the price per liter of yogurt.

A)How much is produced, sold and imported on the US market without intervention

from the authorities? Show in a sketch.

B )How large must the duty be at least to remove all imports of foreign yoghurt?

What will be the price now and how much will be sold in the US market? Show the welfare broadcasts

(changes in consumer, producer and socio-economic surpluses) in a figure

and explain. (no need to calculate the sizes ).