Use the spreadsheet below for the following questions:

(a) Suppose that the Home government maximizes the social welfare which is CS+PS+TR.

Create a figure that plots Home social welfare on the vertical axis against the tariff level on the horizontal axis. If the government maximizes social welfare, what is the optimal tariff?

(b) Next, examine how the optimal tariff might change with a different priority of the government. If the government is biased towards producers, what is the optimal tariff?

N HOME PS 903 893 883 874 864 854 845 835 826 816 807 Home tariff HOME CS 0 0.5 1 1.5 2 2.5 3 3.5 4 4.5 5 5.5 6 6.5 7 7.5 8 8.5 9 9.5 10 10.5 11 11.5 12 12.5 13 13.5 14 14.5 15 15.5 797 788 779 770 761 752 743 734 725 716 707 698 690 218.14 218.82 219.51 220.19 220.87 221.56 222.24 222.93 223.61 224.3 224.99 225.68 226.38 227.07 227.76 228.46 229.15 229.85 230.55 231.25 231.95 232.65 233.35 234.06 234.76 235.47 236.17 236.88 237.59 238.3 239.01 239.72 HOME imports 70.42 68.95 67.48 66.01 64.54 63.07 61.59 60.12 58.65 57.18 55.71 54.24 52.77 51.3 49.83 48.36 46.89 45.42 43.94 42.47 41 39.53 38.06 36.59 35.12 33.65 32.18 30.71 29.24 27.77 26.29 24.82 681 672 664 655 647 639 630 622 15.5 16 16.5 17 17.5 18 18.5 19 19.5 20 20.5 21 21.5 22 22.5 23 23.5 24 24.5 25 622 614 606 598 590 582 574 566 558 550 543 535 527 520 512 505 498 490 483 476 469 462 454 447 441 434 24.82 23.35 21.88 20.41 18.94 17.47 16 14.53 13.06 11.59 10.12 8.64 7.17 5.7 4.23 2.76 1.29 0 239.72 240.43 241.15 241.86 242.58 243.3 244.02 244.74 245.46 246.18 246.9 247.62 248.35 249.07 249.8 250.53 251.26 251.99 252.72 253.45 254.18 254.92 255.65 256.39 257.13 257.86 258.6 259.34 260.09 260.83 261.57 262.32 263.06 263.81 264.56 265.31 266.06 0 0 25.5 0 0 0 427 0 420 413 0 26 26.5 27 27.5 28 28.5 29 29.5 30 30.5 31 31.5 32 32.5 33 33.5 0 0 407 400 393 387 380 374 368 361 0 0 0 N HOME PS 903 893 883 874 864 854 845 835 826 816 807 Home tariff HOME CS 0 0.5 1 1.5 2 2.5 3 3.5 4 4.5 5 5.5 6 6.5 7 7.5 8 8.5 9 9.5 10 10.5 11 11.5 12 12.5 13 13.5 14 14.5 15 15.5 797 788 779 770 761 752 743 734 725 716 707 698 690 218.14 218.82 219.51 220.19 220.87 221.56 222.24 222.93 223.61 224.3 224.99 225.68 226.38 227.07 227.76 228.46 229.15 229.85 230.55 231.25 231.95 232.65 233.35 234.06 234.76 235.47 236.17 236.88 237.59 238.3 239.01 239.72 HOME imports 70.42 68.95 67.48 66.01 64.54 63.07 61.59 60.12 58.65 57.18 55.71 54.24 52.77 51.3 49.83 48.36 46.89 45.42 43.94 42.47 41 39.53 38.06 36.59 35.12 33.65 32.18 30.71 29.24 27.77 26.29 24.82 681 672 664 655 647 639 630 622 15.5 16 16.5 17 17.5 18 18.5 19 19.5 20 20.5 21 21.5 22 22.5 23 23.5 24 24.5 25 622 614 606 598 590 582 574 566 558 550 543 535 527 520 512 505 498 490 483 476 469 462 454 447 441 434 24.82 23.35 21.88 20.41 18.94 17.47 16 14.53 13.06 11.59 10.12 8.64 7.17 5.7 4.23 2.76 1.29 0 239.72 240.43 241.15 241.86 242.58 243.3 244.02 244.74 245.46 246.18 246.9 247.62 248.35 249.07 249.8 250.53 251.26 251.99 252.72 253.45 254.18 254.92 255.65 256.39 257.13 257.86 258.6 259.34 260.09 260.83 261.57 262.32 263.06 263.81 264.56 265.31 266.06 0 0 25.5 0 0 0 427 0 420 413 0 26 26.5 27 27.5 28 28.5 29 29.5 30 30.5 31 31.5 32 32.5 33 33.5 0 0 407 400 393 387 380 374 368 361 0 0 0