The Impact of Government Policy on Competitive Market 1. At the start of the COVID-19 pandemic, the Malay government temporarily eliminated import tariffs on disposable (single use) surgical masks. As a result, the domestic demand for disposable surgical masks were fulfilled by domestic production and imports. By July 2020, 99 million surgical masks valued at Rp400 billion were imported to Indonesia That same month, industry representatives asked the government to restore the import tariff on surgical masks. Assume that if the tariff is restored, there will still be import of surgical masks. a. Explain the possible welfare impact of restoring the import tariff for surgical masks. Should the government impose an import quota instead? Explain your answer and use a graph to support your arguments. Assume that the domestic demand for surgical mask in Malaysia (in million units) is Qd = 210 2P; the domestic supply in Malaysia (in million units) is Qs' = 100 + 600p; the world price is $0.40, and there are no barriers to trade. Calculate: b. The quantity of domestic consumption, production, and import of masks! c. The welfare impact of an import tariff of $0.05 per unit of surgical mask explain in detail who gains, who loses, and by how much!