The domestic demand and supply for computers in Mexico is outlined in the graph. The world price is $5 and Mexico is open to free trade. Suppose Mexico wants to reduce imports by 80 units per period by using a tariff. a) Plot the following items on the graph:

1. New price line with the tariff.
2. The area of the government revenue from the tariff

Price with Tariff Price with Tariff Total Revenue (shaded area) 27 24 21- 18- Price per unit 15 12 (0,11) 97 6- IS World Price 100 200 300 400 500 600 700 800 Reset Quantity per period