Suppose Colombia is open to free trade in the world market for soybeans. Because of Colombia's small size, the demand for and supply of soybeans in Colombia do not affect the world price. The following graph shows the domestic soybeans market in Colombia. The world price of soybeans isP

W

PW=$400 per ton.

On the following graph, use the green triangle (triangle symbols) to shade the area representing consumer surplus (CS) when the economy is at the free-trade equilibrium. Then, use the purple triangle (diamond symbols) to shade the area representing producer surplus (PS).

Area: 16200

If Colombia allows international trade in the market for soybeans, it will importtons of soybeans.

Now suppose the Colombian government decides to impose a tariff of $200 on each imported ton of soybeans. After the tariff, the price Colombian consumers pay for a ton of soybeans is, and Colombia will importtons of soybeans.

Show the effects of the $200 tariff on the following graph.

Use the black line (plus symbol) to indicate the world price plus the tariff. Then, use the green triangle (triangle symbols) to show the consumer surplus with the tariff and the purple triangle (diamond symbols) to show the producer surplus with the tariff. Lastly, use the orange quadrilateral (square symbols) to shade the area representing government revenue received from the tariff and the tan triangles (dash symbols) to shade the areas representing the net loss or deadweight loss (DWL) caused by the tariff.

Y-Intercept: 600

Complete the following table to summarize your results from the previous two graphs.

Under Free TradeUnder a Tariff(Dollars)(Dollars)Consumer SurplusProducer SurplusGovernment Revenue0

Based on your analysis, as a result of the tariff, Colombia's consumer surplus by, producer surplus by, and the government collectsin revenue. Therefore, the net welfare effect is a of.