5) Home's demand and supply curve for corn is QD = 160 - 20P, Qs = 40 + 20P a) Derive and graph Home's import demand schedule. What would the price of corn be in Autarky? Foreign has demand and supply curve as follows: QD* =80 -20P, Qs* = 40 + 20P b) Derive and graph Foreign's export supply curve and find the price of corn in Autarky. c) With free trade, find and graph the equilibrium quantities produced, consumed and traded. What is the world price? Suppose Home imposes a specific tariff of 0.5 on corn imports. d) Determine the effect of the tariff on the following: i) the price of corn in each country; ii) the quantity of corn supplied and demanded in each country; iii) the amount traded. e) Calculate the effect of the tariff on social surplus in terms of Home producer surplus, consumer surplus, and tariff revenue. () Show graphically the terms of trade gain, the efficiency loss, and the total effect on welfare of the tariff. Suppose Foreign is much larger country with demand and supply: QD* = 800 - 200P, Qs* = 400 + 200P.Note that the Foreign autarky price of corn is still the same as b} but the quantities produced and consumed are different. g} With the assumption of a much larger Foreign country i. Recalculate the free trade equilibrium in the case where Home does not impose a tariff on imports. What is the price of corn? What are the quantities consumed and produced in each country? What is the quantity of corn traded? ii. Recalculate the effects of a specic tariff of [1.5 on imports at Home. What is the price of corn in each country? What are the quantities consumed and produced in each country? What is the quantity of corn traded? iii. Recalculate the effects of a specic tariff on 0.5 on welfare at Home. How does the tariff change consumer surplus1 producer surplus1 and tariff revenue? h} What is the difference of the tariff impact between this case and when the countries are of a similar size