Question 1: Tariffs $ Domestic Supply 14 8 6 3 Price-World + Tariff World Price Demand 10 40 60 80 100 Widgets (a) Refer to above figure. In the absence of trade, how many Widgets does this country produce? (b) Refer to above figure. In the absence of trade, how many Widgets does this country consume? (c) Refer to above figure. With free trade and no tariffs, what is the quantity of Widgets imported? (d) Refer to above figure. With a specific tariff of $3 per unit, what is the quantity of Widgets imported? (e) Refer to above figure. With free trade and no tariffs, what is the quantity of Widgets produced domestically? (f) Refer to above figure. The lowest specific tariff which would be considered prohibitive is (g) Refer to above figure. With a specific tariff of $3 per unit, what is the quantity of Widgets produced domestically? (h) Refer to above figure. With free trade and no tariffs, what is the quantity of Widgets consumed domestically? (i) Refer to above figure. With a specific tariff of $3 per unit, what is the quantity of Widgets consumed domestically?