2. Tariffs Suppose Venezuela is open to free trade in the world market for soybeans. Because of Venezuela's small size, the demand for and supply of soybeans in Venezuela do not affect the world price. The following graph shows the domestic soybeans market in Venezuela. The world price of soybeans is Pw = $400 per ton. On the following graph, use the green triangle (triangle symbols) to shade the area representing consumer surplus (CS) when the economy is at the free-trade equilibrium. Then, use the purple triangle (diamond symbols) to shade the area representing producer surplus (PS). ? 1200 Domestic Demand Domestic Supply 1100 CS 1000 900 800 PS PRICE (Dollars per ton) 700 600 500 P 400 300 200 0 50 5 10 15 20 25 30 35 40 45 QUANTITY (Thousands of tons of soybeans) If Venezuela allows international trade in the market for soybeans, it will import tons of soybeans. Now suppose the Venezuelan government decides to impose a tariff of $200 on each imported ton of soybeans. After the tariff, the price Venezuelan consumers pay for a ton of soybeans is $ and Venezuela will import tons of soybeans. Show the effects of the $200 tariff on the following graph. Use the black line (plus symbol) to indicate the world price plus the tariff. Then, use the green triangle (triangle symbols) to show the consumer surplus with the tariff and the purple triangle (diamond symbols) to show the producer surplus with the tariff. Lastly, use the orange quadrilateral (square symbols) to shade the area representing government revenue received from the tariff and the tan triangles (dash symbols) to shade the areas representing the net loss or deadweight loss (DWL) caused by the tariff. ? 1200 Domestic Demand Domestic Supply + 1100 World Price Plus Tariff 1000 900 800 CS PRICE (Dollars per ton) 700 de 600 PS 500 Pw w 400 Government Revenue 300 200 0 50 DWL 5 10 15 20 25 30 35 40 45 QUANTITY (Thousands of tons of soybeans) Complete the following table to summarize your results from the previous two graphs. Under Free Trade (Dollars) Under a Tariff (Dollars) Consumer Surplus Producer Surplus Government Revenue 0 Based on your analysis, as a result of the tariff, Venezuela's consumer surplus by $ and the government collects $ by s producer surplus in revenue. Therefore, the net welfare effect is a of