Problem 1 (Impact of Trade on Price): Currently Japan has a heavy tariff on rice import which effectively prevents other coun- tries to export rice to Japan. Based on the Japanese rice supply example discussed in class (Figure 2.5, page 19 in Textbook), assuming rice demand curve in Japan is fixed, if Japan allows rice import, what is the impact on rice prices in Japan? Illustrate with graph, show the equilibrium price and quantities before and after trade. (Optional Reading #2 - Japanese Import Tariffs)