P Domestic Demand Domestic Supply K A B C 30 pesos G H 25 pesos E 400 800 2100 2900 This graph illustrates the demand and supply curves for cell phones in The Philippines. With free trade, the retail price in the domestic market is 25 Philippine pesos. In this market, an import tariff would cause prices to go up by the full amount of the tariff. With a 5 peso import tariff (compared to free trade) domestic producers in The Philippines gain an amount equivalent to area