Use the diagram below, illustrates the domestic supply curve (SD) and demand curve for a good, to answer the following THREE questions. Assume that the world price is equal to $20 per unit, and nitially there are no trade restrictions in place. 3 A0 go - T e eem e g e n o n s g s g e 10 20 30 40 50 60 Y0 80 80O 1. If a tariff of $10 per unit is introduced in the market. then, at the new equilibrium: a) Consumers will pay a price of $20, quantity sold will be 60 units, of which 40 are im- ported. b) Consumers will pay a price of $30, quantity sold will be 40 units, of which 30 are pro- duced domestically. ) Consumers will pay a price of $20. quantity sold will be 60 units, of which none are produced domestically. d) Consumers will pay a price of $30, quantity sold will be 40 units, of which none are imported. The following two questions refer to the diagram below. which illustrates the domestic supply curve (SD) and demand curve for a good. Assume that the world price is equal to $5 per unit, and that initially there are no trade restrictions. 5 Q 4, If a tariff of $10 per unit of imports 1s introduced. which area represents the deadweight loss? a)a+f. b)c +e. c)atb+ctetf+g djatb+d+h+g+f 5. If a tariff of $10 per unit of imports 1s introduced, which area represents the tariff rev- enue raised? a) d. b)d +h. c) h. d)b+h+g. M