Using the provided graph and answer table, answer the following questions:

1. Fill out the answer table for the initial market for the tariff and the quota. Use the marked areas on the graph to determine your answers. (6 points)
2. How are the tariff and quota equivalent? (2 points)

1. How are the tariff and quota different? (2 points)

Treat each of the following scenarios separately. Neither the tariff nor the quota policy changes:

2.Suppose Domestic Demand for this product increases. Draw (1 point) the impact on the graph and fill out (6 points) the answer table. You may have to label additional areas on the graph to complete the table.

1. How are the effects under the tariff and quota different? (1.5 points)

1. Under which policy is the economy better off after the change? Briefly explain. (1.5 points)

1. Suppose the world price, Pw, for the product falls. Draw (1 points) the impact on the graph and fill out (6 points) the answer table. You may have to label additional areas on the graph to complete the table.
2. How are the effects under the tariff and quota different? (1.5 points)

1. Under which policy is the economy better off after the change? Briefly explain. (1.5 points)

Price Domestic Supply Tariff is a specific tariff Quota is a set equal to Puttaris QP C e Pu Open Economy h Supply Curves: Domestic Demand Op Tariff : QD Quantity Quota.Welfare effects of tariff vs. quota Answer table 1. Market with initial 2. Increase in domestic | 3. Decrease in world tariff or quota policy. demand price Variable Tariff Quota Tariff Quota Tariff Quota Price to consumers Pw+tariff Domestic Qtd consumption Domestic Otp production Imports Qtd-Qtp Consumer surplus atb Producer surplus Cth Government etf revenue Deadweight g consumption loss Deadweight d production (efficiency) loss