* 0O 1. 足 PRICE (Dollars per tonne) ngage.com/static/nb/ui/evo/index.html?elSBN=9780357302934&snapshotld%3D2741525&id%3D1376796971& * CENGAGE MINDTAP >> Q Sear News Analysis: Nailing Down Metal Tariffs On the following graph, use the black line (cross symbol) to indicate the domestic price of aluminum in the presence of a $200-per-tonne tariff. Then use the green area (triangle symbol) to shade the area that represents consumer surplus under the tariff, and use the purple area (diamond symbol) to shade the area that represents producer surplus under the tariff. Finally, use the grey rectangle (star symbols) to show the revenue that the U.S. Tools government collects as a result of the tariff, and use the tan triangles (dash symbols) to show the deadweight loss (DWL) from the imposition of the tariff. Note: There are two DWL triangles. Plot the right-most DWL triangle first, then plot the left-most DWL triangle after that. Plotting the DWL triangles Tips out of order may cause your answer to be graded incorrectly. Tips no 0000 Domestic Demand Domestic Supply 006 Price with Tariff 008 ment: A Consumer Surplus 009 000 000 Producer Surplus Iback Free Trade Price Tariff Revenue 20 09 40 08 06 QUANTITY OF ALUMINUM (Millions of tonnes per month) True or False: According to this model, restricting trade using tariffs helps both consumers and domestic producers. MacBook Air F3 F4 F8 F10 23 3 24 4. 5. 6 7. N olt command command option P * 00 PRICE (Dollars per tonne) News Analysis: Nailing Down Metal Tariffs 2. The impact of a tariff Consider a hypothetical example of trade in aluminum between the United States and China. For simplicity, assume that China is the only source of U.S. aluminum imports. The following graph shows the U.S. market for aluminum. Note that in the absence of any trade, the market price for aluminum in the United States is $500 per tonne, and the equilibrium quantity is 50 million tonnes per month. Use the green area (triangle symbol) to show U.S. consumer surplus under free trade with China, and use the purple area (diamond symbol) to show U.S. producer surplus under free trade with China. 000 Domestic Demand Domestic Supply t: A 006 Consumer Surplus 008 000 Producer Surplus 009 000 Free Trade Price 09 06 出尔: 年 FEB 6. **** MacBook Air F2 F3 F4 F5 F6 F7 F8 F10 24 4. & 23 3. 8. 9. 7. Y M G gE mand