Ozland is a small country that takes the world price of rice as given. Its domestic supply and demand for rice is given by the following:

D= 102 - 6P

S= 6P - 30

a.Graph the demand and supply of rice in Ozland

b.Assume initially that Ozland does not open to trade. What is the autarky equilibrium price and quantity?

c.Suppose Ozland decides to engage in trade. Determine the quantity demanded, quantity supplied, and import given the world price of $8 per unit of rice.

d.If the Ozland government imposes a tariff in the amount of $1, what is the new domestic price? What is the amount imported?

e.Determine the effect of the tariff on the Ozland consumers, producers, and government.

f.What is the net effect of the tariff on Ozland's welfare? Explain.

g.If the Ozland government decides to switch to a quota from the $1 tariff, what level of quota they should set to keep government revenue constant (assume that they will sell the quota licenses)?

h.The demand for rice in Ozland increases. The new demand equation is:D= 126 - 6P.How much will the Ozlandians pay for a unit of rice if they keep the $1 tariff (no quota)? What will be the level of imports after the demand shift?

i.Based on the scenario in part h how much will the Ozlandians pay for a unit of rice if they have the quota instead (the level of quota that you calculated in part g)? What will be the level of imports after the demand shift?