The world price for baseballs is $24 per dozen, and almost all of them are produced outside the U.S.Suppose the U.S. demand curve is QD =100,000 - 2,000P, where P is price per dozen, and Q is measured in dozens.The U.S. domestic supply curve is QS = 10,000 + 1,000P.Explain in words and graphically.

a.Before a tariff is imposed, what is the U.S. equilibrium price? Quantity of domesticconsumption? Quantity of domestic production? And quantity of imports?

b.Congress has decided to help the baseball manufacturing industry by imposing a tariff of $6 per dozen. What is the new equilibrium price? Quantity of domestic consumption quantity? Quantity of domestic production? And quantity of imports?

c.What are the losses to U.S. consumers, gains to U.S. producers, revenue gained by the government, and deadweight loss from the tariff? (Answer in $.)

d.What quota level would have the equivalent effect on price as the $6 tariff?

e.What is the deadweight loss from the quota? (Answer in $.)