1. Consider a large country applying a tariff t to imports of a good. (a) Draw the Home market and World market supply-demand diagram. Clearly label the amount of import in the free trade equilibrium and equilibrium with a tariff. (b) How does the export supply curve in world market compare with that in the small country case? Explain briefly why these are different. (c) Explain how the tariff affects the price paid by consumers in the importing country and the price received by producers in the exporting country. Use graphs to illustrate how the prices are affected if 1. the export supply curve is very clastic(flat) or 2. the export supply curve is inclastic (steep)