Suppose Guatemala is open to free trade in the world market for maize. Because of Guatemalas small size, the demand for and supply of maize in Guatemala do not affect the world price. The following graph shows the domestic maize market in Guatemala. The world price of maize is PW=$350 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).

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). 490 Domestic Demand Domestic Supply 470 CS 450 430 410 PS PRICE (Dollars per ton) 390 370 P 350 330 310 290 0 3 27 30 6 9 12 15 18 21 24 QUANTITY (Thousands of tons of maize) If Guatemala allows international trade in the market for maize, it will import tons of maize. Now suppose the Guatemalan government decides to impose a tariff of $20 on each imported ton of maize. After the tariff, the price Guatemalan consumers pay for a ton of maize is $ and Guatemala will import tons of maize. Show the effects of the $20 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. ? 490 Domestic Demand Domestic Supply 470 World Price Plus Tariff 450 430 410 CS PRICE (Dollars per ton) 390 370 PS PW 350 330 Government Revenue 310 290 0 3 15 18 21 27 30 DWL 6 9 12 24 QUANTITY (Thousands of tons of maize) Complete the following table to summarize your results from the previous two graphs. Under Free Trade Under a Tariff (Dollars) (Dollars) Consumer Surplus Producer Surplus Government Revenue 0 1 Based on your analysis, as a result of the tariff, Guatemala's consumer surplus by $ and the government collects $ by $ producer surplus in revenue. Therefore, the net welfare effect is a of $ Grade It Now Save & Continue Continue without saving