Question: Kindly answer only question 3, but question two was needed so I posted multiple screenshots 3. (4 points) a. In the setting from problem 2,
Kindly answer only question 3, but question two was needed so I posted multiple screenshots



3. (4 points) a. In the setting from problem 2, calculate the domestic consumer and producer surplus when there is no trade (like in part a), and when there is trade (like in part b). b. Now suppose the government imposes a $5 tariff on imported tshirts. Find the new equilibrium price and quantity demanded. Now what is the domestic consumer and producer surplus? 2. (4 points) Suppose the domestic demand for tshiits (in thousands) is represented by the equation P = 80 2Q and domestic supply for t-ShiI'tS (in thousands) is represented by the equation P = 5 + Q. a. Graph the domestic demand and supply for tshirts on the gure on the next page. Suppose there is no opportunity for international trade. What is the equilibrium price and quantity for t- shirts? Price Quantity (thousands) b. Now suppose there is international trade and the world price of tshirts is $20. What is the quantity of t-shirts supplied domestically, and what is the quantity imported
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