Suppose, in 2060 the inverse demand and supply forbeef (per kg) in Russia is given by:

Inverse demand: p = 110 - Q^D

Inverse supply: p = 30 + Q^S

Suppose, the free-trade world price of beef is p^W= $40per kg

a)If Russia sets a tariff equal to $5 per unit, assuming that the world price does not change, what is the price that consumers pay for beef in Russia? What is the price that domestic producers receive?Explain. (4 marks)

b)Calculate the quantities supplied, demanded and imported in equilibrium with the tariff. Illustrate on a graph. (2 marks)

c)On your graph, identify consumption distortion, production distortion, government revenue and total welfare for Russia rising from the tariff.(4 marks)

d)Suppose, you are hired by the New Zealand Ministry of Foreign Affairs and Trade (MFAT) to work on the negotiations for the Free Trade Agreement (FTA) with Russia, Belarus and Kazakhstan (RBK) Customs Union. Undoubtedly one of the points of negotiation will be the removal of the tariff for NZ beef. To identify arguments in favour of an FTA with the RBK customs union, specify TWO other indicators you need information on. Explain the rationale for your choice. (5 marks)

Suppose, in 2060' the inverse demand and supply forbeef {per kg] in Russia is given by: Inverse demand: p = HID[1D Inverse supply: p = 3n + [15 Suppose, the free-trade world price of beef is pw= 5110 per kg a] If Russia sets a tariff equal to $5 per unit, assuming that the world price does not change, what is the price that consumers pay 'for beef in Russia? What is the price that domestic producers receive?I Explain. [4 marks} b] Calculate the quantities supplied, demanded and imported in equilibrium with the tariff. Illustrate on a graph. [2 marks] c] [in your graph, identify consumption distortion, production distortion, government I revenue and total welfare for Russia rising from the tariff. [4 marks] d] Suppose, you are hired by the New Eealand Ministry of Foreign Affairs and Trade [MFATI to work on the negotiations for the Free Trade Agreement [Fm] with Russia, Belarus and Kazakhstan {RBK} Customs Union. Undoubtedly one of the poin'ls of negotiation will be the removal of the tariff for NZ beef. To identify arguments in favour of an FI'A with the REF: customs union, specify TWO other indicators you need information on. Explain the rationale for your choice. [5 marks}