In the country of Alpha, t-shirts are sold domestically in a competitive market, the equilibrium price is $10, and the equilibrium quantity is 100.

(a) Draw a correctly labeled demand and supply graph for the domestic y-shirt market in Alpha. Plot the numbers on the graph.

(b) Assume the world price of t-shirts is $6, and Alpha engages in international trade.

i. Will Alpha be an exporter or importer of t-shirts? Explain.

ii. On your graph in part (a), indicate the domestic quantity demanded of t-shirts at the world price and label it QD. iii. On your graph in part (a), indicate the change in the consumer surplus, shaded completely.

(c) Suppose the government of Alpha imposes a tariff of $2 on t-shirts. On your graph in part (a), indicate the new domestic quantity supplied of t-shirts as a result of the tariff and label it QS.