Question 5 The country of Genovia produces and consumes pizza ovens. Below is a graph of Genovia's demand for pizza ovens. Consumers in Genovia also purchase imported pizza ovens, from Italy and Romania. The table on the right shows the prices at which each country can produce. Demand for Pizza ovens Country Price of production 2,400 1,800 1,200 60 80 Genovia Italy Romania $2,400 #1800 $ 1,200 a) To protect domestic producers, the Genovian government imposes a $1,200 tariff on all imports to the country. What is the price paid by consumers for a raincoat: Pizza oven from each country? b) If Genovia enters the European Union, they will not be able to tariff imports from other member countries. All other trade barriers remain unchanged. What is the new price paid by consumers for a raincoat: Pizza oven from each countr What is the net effect of the formation of this free trade area? Label the graph and show your work. (Make sure you calculate the amount and specify whether it is a gain or a loss to Genovia).