Suppose the domestic shoe demand and supply equations in a small open economy are:

P = 168-4^D

P = 24+2^S

On the other hand, the shoe demand and supply equations of the large open economy are: Let's assume:

P = 360- 6^D

P = 40 + 2^S

A) Calculate the amount of shoe production and consumption in small and large countries where the free trade price (P_FT) is equal to the arithmetic average of the domestic prices of these two countries in the case of autarky.

B) Suppose the large country imposes a customs tax of $ 12 per unit of good on top of the free trade price, and the smaller country drops it below $ 4.

For the Large country of customs tax application in the light of above information:

1- In the welfare of the consumer.

2- In the welfare of the manufacturer.

3- In treasury income.

4- In Net prosperity calculate how much changes it causes.

Show them on the graph.