The article Trumps Taris Couldnt Save the California Olive Industry appeared on the Bloomberg news website on March 17, 2023. The article discusses the imposition of taris by the United States on the importation of table olives from Spain. Under the assumption that the US is a large country and Spain is the only exporter of table olives, provide an explanation of how the import tari will aect US producers of table olives. (This will follow the analysis of an import tari by a large country developed in lecture). The article mentions that the reduction in imports from Spain was oset, at least to some degree, by increased exports from Greece (not subject to a tari) to the US. Make the following assumptions.

1. The US is a large country.

2. Exports are available from both Spain and Greece. 3. Spain is a lower cost country than Greece. (The graph of XSSpain lies below XSGreece). 4. With free trade (no taris) the supply of exports to the US market will be the horizontal sum of XSSpain and XSGreece .

Free Trade: Show how the price and volume of trade is determined when no taris are placed on imports of table olives. Your analysis should identify the source of imports.

Taris on Imports from Spain: Consider the imposition of taris on tables olives on imports from Spain but not Greece. Show how price and volume of trade is determined and identify the source of imports. Explain whether the predictions of your model regarding source of imports is consistent with the statement in the article. Discuss the impact on US producers when imports from one country are substituted by imports from another country.

Answer bolded parts.