Question 6: The graphs below pertain to the US and world markets for solar panels. Answer the gquestions below by filling in the blanks with the correct numbers and letters and circling the underlined that you judge to be correct. a) Under autarky, the US price of solar panels is $___. Under free trade, the US price of solar panels is S, and the US imports/exports millions of solar panels. The graph above assumes that the US sets a quata of 7 million on the imports of solar panels. b) The above quota increases/decreases the US price of solar panels to$ and the quota is/is not binding. c) After the quota is imposed, the world price of solar panels is and the US imports millions of solar panels. d) Calculate the tariff that would have the same effect on the US price and imports as the quota of 7 million: . &) The quota increases/decreases US consumer surplus by. and increases/decreases US producer surplus by . f) The quota rent is area . @) Under a VER, the quota rent stays in the US/goes abroad and the net effect on US welfare is h) If quota licenses are allocated to US firms, the quota rent stays in the US/goes abroad and the net effect on US welfare is i) If the quota were increased to 8 million, the US price of solar panels would fall/rise /stay the same compared to the quota of 7 million. j) If the quota were set at million, the US price would be the autarky price. US supply Price D, millions of solar panels World price line at PW US import Demand 14 millions of solar panels imported