Questions 1-? are based on the Figure 1. (7*2=14 points) Figure l: The US. Market for Computers N 'hJG'hU'I-b-M Price S d{domestic supply curve) I omestic price with tariff World price II r1(domestic demand curve) I uantity (thousands of units) . Under free-trade the US imported computers, but after imposing a tariff the US imported computers. . The imposition of a tariff on computers caused producer surplus to _ (inercasefdccreasc) by '3 . The imposition of a tariff on computers caused consumer surplus to _ by . How much revenue will the US government collect as a result of the tariff on computers? . The imposition of a tariff on computers caused total economic welfare in the US to . What is the production effect of the tariff on computers?| . What is the consumption effect of the tariff on computers? by . What are Voluntary Export Restraint (VER) agreements? Why do some governments force foreign exporters into them instead ofjust using quotas or tariffs to restrict imports by the same amounts? ls it because VERs bring the imponing country a bigger national gain than quotas or tariffs? (3 points) . A small country imports sugar. With free trade at the world price of$CLlS per pound the country's national market is: (4*2=3 points) Domestic Production: 100 million pounds per year Domestic Consumption 450 million pounds per year Imports 35!} million pounds per year The country's government now decides to impose a quota that limits sugar imports to 200 million pounds per year. With import quota in effect. the domestic price rises to $0.18 per pound. and domestic production increases to 150 million pounds per year. The government auctions the right to import the 200 million pounds. a. Calculate the domestic producers gain or loss from the quota b. Calculate the domestic consumers gain or loss from the quota c. Calculate how much the government can receive in payment if it auctions the quota rights to import. d. Calculate the net national gain or loss from the quota