1. (10 points) The above graph represents the tariffs in a large country case (this is a large country which imposes the tariff and therefore this country has the ability to change the world price).

(a) What is the quantity bought and the quantity sold before the tariff (under free trade)? (Only typed answers are accepted)

(b) What is the dollar amount of the tariff per unit of the good? (Only typed answers are accepted)

(c) What is the quantity bought and the quantity sold after the tariff? (Only typed answers are accepted)

(d) How much of the tariff per unit of the good is paid by consumers of the home country and

how much of the tariff per unit of the good is paid by the foreign country that is exporting to the home country? (Only typed answers are accepted)

(e) How much of the government revenue from the tariff is paid by the foreign country and how

much of the government revenue from the tariff is paid by the consumers of the home country? (Only typed answers are accepted)

(f) Does this country have a net gain or a net loss as a result of the tariff? Please explain. (Only typed answers are accepted)