a. Home imposes a specific tariff of 0.5 on wheat imports. a. Determine and graph the effects of the tariff on the following:
(1) the price of wheat in each country;
(2) the quantity of wheat supplied and demanded in each country;
(3) the volume of trade.
b. Determine the effect of the tariff on the welfare of each of the following groups:
(1) Home import-competing producers;
(2) Home consumers;
(3) the Home government.
c. Show graphically and calculate the terms of trade gain, the efficiency loss, and the total effect on welfare of the tariff.