respectively. The unit cost of headphone production in Vietnam is $30, while it is $45 in New Zealand. Currently, there is a 100% tariff on headphone imports into Australia. a. (6 marks) What is the equilibrium price and quantity of headphone in Australia? How many headphones will Australia import, and how much tariff revenue will the Australian government collect? Suppose now that Australia signs a free trade agreement (FTA) with New Zealand. b. (6 marks) What is the price of headphone in Australia? How many headphones will Australia import, and from which country? How much tariff revenue will the Australian government collect? c. (4 marks) Is this the case of trade creation or trade diversion as a result of Australia forming an FTA with New Zealand? Explain why. d. (6 marks) Calculate the total welfare gain/loss to Australia as a result of the Australia-New Zealand FTA, by calculating the change in producer surplus, consumer surplus, and government revenue in Australia