Suppose that Congress imposes a tariff on imported automobiles to protect the U.S. auto industry from foreign competition. Assuming that the United States is a price taker in the world auto market, show the following on a diagram: the change in the quantity of imports, the loss to U.S. consumers, the gain to U.S. m

PART 1: Suppose that Congress imposes a tariff on imported automobiles to protect the U.S. auto industry from foreign competition. Assuming that the United States is a price taker in the world auto market, show the following on a diagram: the change in the quantity of imports, the loss to U.S. consumers, the gain to U.S. manufacturers, government revenue, and the deadweight loss associated with the tariff. The loss to consumers can be decomposed into three pieces: a gain to domestic producers, revenue for the government, and a deadweight loss. Use your diagram to identify these three pieces.

PART 2: Now assume you are an astute student of economics (not a hard assumption, we hope).
Although all the arguments for restricting trade have their shortcomings, name the two or three
arguments that seem to make the most economic sense to you. For each, describe the economic rationale for and against these arguments for trade restrictions.

PART 1 FOR GRADING: Graphs drown by hand or in Excel are accepted, but should neatly show the required information as described above. This part should be completed in ONE page. Hand drown graphics should be scanned and attached to the project.

PART 2 FOR GRADING: I am not looking for you to simply repeat several key phrases. So, in your own words, name the arguments and provide the rationale. This part should be completed in ONE to TWO pages.

I NEED A GRAPH INSTEAD OF A CHART! please