Using the parameters for the U.S.-ROW sugar model detailed in Section 7 .2, create a figure that

Question:

Using the parameters for the U.S.-ROW sugar model detailed in Section 7 .2, create a figure that plots U.S. social welfare on the vertical axis against the tariff level on the horizontal axis. Using this visual aid, find (to a reasonable approximation) the optimal tariff, and compare it to the tariff level of 12.38 cents per pound that is a good approximation for the actual policy. What can you learn from this comparison?