The supply and demand for Toyotas (1.8 million) were slightly higher than for GM (1.5 million) at the $30K range for the first time ever. GM was suffering from many inefficiencies during the financial crises that year.

1. If the U.S. put a tariff on Toyotas, show on Graph 1 what would happen to the supply of Toyotas. In a couple of well written sentences, explain why the supply of Toyotas would change, and compare the new equilibrium price and output to the old one.

2. Again, if the U.S. put a tariff on Toyotas, show on Graph 2 what would happen to the demand for GM autos. In a couple of well written sentences, explain why the demand for GM autos would change, and compare the new equilibrium price and output to the old one.

3. Explain in a couple of well written sentences which industry in the U.S. would benefit in the short run from putting a tariff on all Japanese autos, and how.

4. Explain in a couple of well written sentences which industries in the U.S. would lose in the long run if the U.S. put a tariff on all Japanese autos, and why.

5. From a brief research, choose a less developed country (one with low per-capita GDP), together with one of its leading agricultural products. Explain in a couple of well written sentences why it would be justifiable for that country to impose a tariff on the importation of the same product from the U.S.