Price Sus Pw+ T-- 3 Pw 7. bluow Dus to Q Q3 Q Q2 Quantity priwol-lot er 1owens oldet pnivgsqmooos ort ni sisb ed prel 4. PW is the world price and PW + T is the world price plus a tariff. Identify the following: a. The level of imports at PW b. The level of imports at PW + T C. The loss in consumers' surplus as a result of a tariff d. The gain in producers' surplus as a result of a tariff e. The tariff revenue received by the government as a result of a tariff f. The net loss to society as a result of a tariff g. The net benefit to society of moving from a tariff to no tariff Tepa boop

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Sometimes governments use the 'national security' argument to justify protecting an industry with tariffs. (Choose the best answer) O Stockpiling the product is a plausible alternative to ensure national security interests without risking a trade war. O An export subsidy would always be the first best option Most countries are much weaker than the USA and therfore would never retaliate. O This argument is always plausible since tarrifs are the best way to ensure the industry is able to survive.

Figure: Tariffs Price $90 88 150 O $90; 1,150 O $60; 650 O $60, 1,150 O $40; 1,800 Domestic spply World supply tarif 1150 1550 1800 In the domestic market with international trade and no tariffs, the price is Domenic demand Quantity and the quantity purchased in the United States is units.