The following equations represent a small country's home supply and demand curves for widgets: S = 0 + 2P and D = 1,000 - 2P.

a) Find the equilibrium price and quantity for widgets in autarky.

b) Now let the world price be $200. Find domestic production, domestic consumption, and the amount of imports.

c) Derive the country's import demand curve for widgets.

d) Let the country impose a 10% tariff. Calculate its deadweight losses.

Consider a country with tariff and the equilibrium points given in the gure below. Luge trill'ldo b+f+g+d+i+j Fw+t .. . ................................. X'+l Pw+r .; n p... a .i. x. 31 3: 52 0:990: M1! \"2 \"a \"1 Input!- (I) Domestic mm (b) Minimal a} Suppose that the country decides to increase its tariff from t' to t. Calculate the gains or losses to domestic consumer surplus due to the increase in tariff? Are there gains or losses to domestic producer surplus due to the increase in tariff? How is government revenue affected by the policy change? Write your answers in the form of alphabets denoted in the gure. (2pts) b) What is the overall gain or loss in welfare due to the policy change? (Zpts) c} Is the country represented in the figure a small country or a large country? Explain how you came to your conclusion. What changes would you see in the gure above in the alternative case and why? (4 pts]