This is a question for international economics, the topic is on placing tariff by a large importing country.

\fNow, assume that the U.S. is a large importing country in the market for flip-flops. Therefore, we must calculate the free trade price, based on supply and demand in both the U.S. and the ROW. For convenience, we'll use the U.S. the same supply and demand equations as in Part I above, even though this is now a different situation. And for the ROW, we'll use the following: Q ROW = 20 PROW Q ROW = 90 - 10 PROW 1. If you weren't told that the U.S. was the importer in this problem and the ROW was the exporter, how would you find that out for yourself? 2. With free trade, what will be the world price of flip-flops? [Remember: This is a different problem from Part I, so don't assume that the free trade price is the same as in Part I above. ] 3. With free trade, what will be the quantity of U.S. imports (and the quantity of exports from the rest of the world) in thousands of pairs per week? 4. Now suppose the U.S.-as a large country-puts a $3 tariff on imports of this good. What will be: a. the equilibrium price (Pus) in the U.S.? b. the equilibrium price (PRow) in the ROW? c. the equilibrium quantity of U.S. imports (and exports from the rest of the world) in thousands of pairs per week? 5. On the lower half of the same page on which you drew the graph in Part I, draw a rough graph (don't worry about drawing it to scale) including both the U.S. and the ROW. Put numbers on it based on your answers in 1., 2. and 3. above, as well as any other relevant numbers needed to calculate the areas in 5. below 6. For the U.S., due to the tariff, calculate the change in each of the following: a. Producer surplus b. Consumer surplus c. Government revenue d. Total welfare 7. For the ROW, due to the tariff, what is the change in: a. Producer surplus b. Consumer surplus C. Total welfare