The following graph shows the market for TV sets in Venezuela. The grey line illustrates the world supply curve of TV sets. Suppose that Venezuela imposes a quota that limits imports to 300 TV sets. Use the green points (triangle symbol) to plot the quota-adjusted supply curve on the following graph. (Hint: Make sure you use three points to plot the curve, which is parallel to the original supply curve, with the last point indicating the upper limit allowed by the graph.) Then, use the black point (cross symbol) to indicate the new equilibrium point. PRICE (Dollars per TV set) 600 550 500 450 400 350 300 250 200 150 100 50 0 As a result of the quota, price rises by $ Demand Supply SWorld 0 100 200 300 400 500 600 700 800 900 1000 QUANTITY (Number of TV sets) " ► Swith quota + Ewith quota and consumer surplus falls by $ (?)

Consider the Colombian market for soybeans. The following graph shows the domestic demand and domestic supply curves for soybeans in Colombia. Suppose Colombia's government currently does not allow international trade in soybeans. Use the black point (plus symbol) to indicate the equilibrium price of a ton of soybeans and the equilibrium quantity of soybeans in Colombia in the absence of international trade. Then, use the green triangle (triangle symbol) to shade the area representing consumer surplus in equilibrium. Finally, use the purple triangle (diamond symbol) to shade the area representing producer surplus in equilibrium.   Based on the previous graph, total surplus in the absence of international trade is   .   The following graph shows the same domestic demand and supply curves for soybeans in Colombia. Suppose that the Colombian government changes its international trade policy to allow free trade in soybeans. The horizontal black line (PWPW) represents the world…

Suppose Zambia is open to free trade in the world market for soybeans. Since Zambia is small relative to the international market, the demand for and supply of soybeans in Zambia have no impact on the world price. The following graph shows the domestic market for soybeans in Zambia. The world price of a ton of soybeans is PW = $250. Use the following graph to show the effects of the $ 10 tariff. Use the black line (plus symbol) to indicate the world price plus the tariff. Then, use the green points (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 points (rectangle symbols) to shade the areas representing deadweight loss (DWL) caused by the tariff.