1.A small country’s demand curve is given by Q=10-(P/2) and its supply curve is given by Q=P-5. Assume that there is initially free trade and that the world price under free trade is $7. If a...

1.A small country’s demand curve is given by Q=10-(P/2) and its supply curve is given by Q=P-5. Assume that there is initially free trade and that the world price under free trade is $7. If a prohibitive specific import tariff is now introduced in this country (i.e. a tariff that reduces net exports to zero), what will be the change in this country’s government revenue (everything else being equal)?a.no changeb.increases by 5c.decreases by 5d.increases by 102.A large country’s demand curve is given by Q=10-(P/2) and its supply curve is given by Q=P-5. If the world price under free trade is $7, then what is the prohibitive import quota for this economy (i.e. the quota that would reduce net exports to zero)?a.1.5b.4.5c.0d.3