3. (20 points) Suppose Home is a small country. Use the figure to answer the questions: Home Market World Market Price S Price 14 x*+t 6 6 M 5 8 Quantity 2 6 Import (a) (6 points) Suppose Home engages in free trade and faces the world price PW =$6. Determine the consumer and producer surplus under free trade. (b) (6 points) Concerned about the local producers, Home government imposes a $2 per unit spe- cific tariff. Determine the net welfare effect of the tariff on Home and the loss of welfare under tariff compared to the case under free trade