Suppose Zambia is open to free trade in the world market for soybeans. Because of Zambia's small size, the demand for and supply of soybeans in Zambia do not affect the world price. The following graph shows the domestic soybeans market in Zambia. The world price of soybeans is Pw = $400 per ten. Throughout this problem, assume that changes in trade policies in other nations do not significantly affect the world market for soybeans and that there are no transportation or transaction costs associated with international trade in soybeans. Also assume that domestic supplies will satisfy domestic demand as much as possible before any exporting or importing takes place. On the following graph, use the green triangle (triangle symbols) to shade the area representing consumer surplus (CS) when the economy is at the free-trade equilibrium. Then, use the purple triangle (diamond symbols) to shade the area representing domestic producer surplus (PS) 1200 Domestic Demand 1000 300 - ini and sang d 200 1300 IfZambie allows international trade in the market for soybeans, it will import your answer, accounting for the horizontal axis units.) 1100 ● 1000 Now suppose the Zambian government decides to impose a tariff of $200 on each imported ton of soybeans. After the tariff, the domestic price of a ton of soybeans will be 3 and Zambia will import tons of soybeans. Show the effects of the $200 tariff on the following graph. 700 Use the grey line (star symbol) to indicate the world price plus the tariff. Then, use the green triangle (triangle symbols) to show the consumer surplus with the tariff and the purple triangle (diamond symbols) to show the domestic producer surplus with the tarify. Lastly, use the orange quadrilateral (square symbols) to shade the area representing government revenue received from the tariff and the tan triangles (dash symbols) to shade the areas representing the net loss or deadweight loss (DWL) caused by the tariff 300 S 10 15 20 25 QUANTITY (Thousands of tons of soybeans) Domestic Supply Domestic Demand X of S Consumer surplus Producer surplus Government revenue CS 30 35 QUANTITY (Thousands of tons of soybeans) PS Domestic Supply 0 tons of soybeans. (Note: Be sure to enter the full value for Complete the following table to summarize your results from the previous two graphs. Under Free Trade (Dollars) Under a Tariff (Dollars) +Y/x+8+Y]+ World Price Plus Tar Government Revenue by E Based on your analysis, as a result of the tariff, Zambia's consumer surplus and producer surplus Taking into account how much revenue the tariff generates for the government, the net welfare effect is a by S