Question 3 [20 points] The domestic demand for silk shirts is given by P = 85 - Q. The foreign supply is given by P = 25 and the domestic supply by P = 20 + Q. For each part, select the proper drop-down for the graph and plot the lines using two points. Draw the shaded region for part (c) by drawing four different points in each corner of the area. Demand Line 90- 75+ 60- Price ($) 45 30- 15. 10 20 0 40 50 60 70 80 90 100 Reset Quantity (silk shirts) a) Draw the demand line, the supply line, and the world price line. What are the amounts supplied by domestic suppliers and by foreign suppliers? Amount supplied by domestic suppliers = 0 silk shirts Amount supplied by foreign suppliers = 0 silk shirts b) If the government now imposes a tariff of $20 per unit on the foreign good, draw the new world price with the tariff line and compute the new quantities supplied by domestic and foreign producers. Amount supplied by domestic suppliers (with tariff) = 0 silk shirts Amount supplied by foreign suppliers (with tariff) = 0 silk shirts c) Shade in the tariff revenue in the graph above and compute its value. Tariff Revenue = $0