Examine how the "optimal" tariff might change with different priorities of the political decision makers as follows. Again, use the parameters for the U.S.-ROW sugar model.
(a) Plot unweighted welfare as a function of the tariff level. In the same figure, plot weighted welfare with Acons = Atax = 1 and Aprod = 1.5, and then with Aeons = Aprod = 0 and
Atax = 1.
(b) What is the optimal tariff in the case of a social-welfare-maximizing government? A government biased toward the sugar producers? A government that cares only about raising tariff revenue?
(c) Discuss the differences, and try to analyze why the optimal tariffs in the three cases are different in the way that they are.