The model (graph) below represents a small country's trade of good X after the government decided to impose tariffs on imports. Consider the case of trade after tariffs. Please answer the following questions:
What area(s) represent the loss of surplus to producers? What area(s) represent government revenue? Describe the impact of a tariff on social welfare. Refer to the graph to support your answer:
1. Pwt Pw
0.5, QD Quantity