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This is question #5 of an eight-part question set. Consider the following hypothetical U.S. market for motorcycles. The first column summarizes the motorcycle market given

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This is question #5 of an eight-part question set. Consider the following hypothetical U.S. market for motorcycles. The first column summarizes the motorcycle market given free trade; the second column represents the situation when the United States, a large importing country, imposes an $800 tariff per unit of motorcycle imported. Assume that transportation costs are zero. FREE TRADE WITH $800 TARIFF World price of motorcycle Tariff per unit Domestic price of motorcycle Motorcycles bought in the U.S. (per year) Motorcycles made in the U.S. (per year) Motorcycles imported into the U.S. (per year) $2,500 SO $2,500 60,000 20,000 40,000 ??? ??? $3,000 50,000 25,000 25,000 When the United States, a large importing country, imposes an $800 tariff per unit of motorcycle, the domestic price of motorcycles increases to $3,000. Question: From the given information, calculate the gain/loss in U.S. producers' surplus from the imposition of the tariff. gain of $11.25 million loss of $11.25 million loss of $12.5 million gain of $12.5 million

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