Numeric Problem 1 The U.S. wheat market is represented by the following demand and supply curves: 12 2 Initially suppose there is no trade in wheat between the United States and the rest of the world. Find the following:

1. The equilibrium price

2. The equilibrium quantity

3. Consumer surplus

4. Producer Surplus

5. Total Surplus

Now suppose the United States can trade wheat with the rest of the world, taking the world price of $2 per bushel as given. Find the following:

6. What is the quantity of imports?

7. What is the change in consumer surplus? (Use a negative sign to indicate a decline)

8. What is the change in producer surplus? (Use a negative sign to indicate a decline)

9. What is the change in total surplus? (Use a negative sign to indicate a decline)

Now suppose the United States impose a $1 per unit tariff on all goods imported. Find the following:

10. What is the quantity of imports?

11. How much tax revenue does the United States government collect?

12. What is the size of the DWL? Calculate this number relative to the open trade scenario.Report this as a positive number.