Required Question Sd = domestic supply P Sm = import supply; Sad ft =free trade, t= tariff D = domestic demand t = per-unit tariff =$1 Pw = world price Q = domestic output C = total domestic $11 Sm consumption b = $1 Pw = $10 C d e a MFT D Q1 Q2 C2 C1 Q (2) A. Using notation from the above graph what is the impact (change) of the tariff policy (t = $1) relative to free trade on: a) domestic output: __ to b) total domestic consumption:_ to (4) B. Using notation for the labeled areas in the graph what are the changes in the following domestic welfare measures in moving from free trade to tariff policy: a) consumer surplus _ b) producers surplus c) tariff revenue_ d) net changes _ (6) C. Explain why the 2 net changes (areas) that you identified in Part B(d) are economic losses to the domestic country. That is, what is the economic interpretation of these two net changes. 1) 2) Your