Suppose the following table reflects the domestic supply and demand for Tshirts:

1. Graph these market conditions and identify when there is an absence of trade (i) the market price, (ii) domestic consumption, and (iii) domestic production.
2. Now suppose that foreigners enter the market, offering to sell an unlimited supply of Tshirts for $7 apiece. Now with free trade, identify (i) the market price, (ii) domestic consumption, and (iii) domestic production.
3. If a tariff of $2 per Tshirt is imposed, with this trade barrier, identify (i) the market price, (ii) domestic consumption, and (iii) domestic production.

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Price ($) Quantity supplied 8 7 65 4 3 2 1 Quantity demanded 2 4 6810121416 1513119 7 5 3 1