Question: Use the graph below to answer the following questions:

The graph above shows the demand and supply of shirts for the country of Eragos.

1. If trade with other countries is prohibited, the Eragoans are consuming ____ shirts at a price of ______ per shirt. (10pts)
2. With free trade, for a world price of $4 per shirt, the Eragoans are producing ______ shirts. (10pts)
3. With free trade, for a world price of $4 per shirt, the Eragoans are consuming _______ shirts. (10pts)
4. With free trade, for a world price of $4 per shirt, the Eragoans are importing ________ shirts.(10pts)
5. If the world price is $4 per shirt, and the government of Eragos imposes a tariff of $1, the Eragoans are producing _________ and importing ___________shirts. (10pts)
6. If the world price is $4 per shirt, and the government of Eragos imposes a tariff of $1, how much tariff revenue will the Eragos government collect? _____ (10pts)

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Deliverable: Word Document