Home imposes a specific tariff of 1.5 books on imports a) Determine and graph the effects of tariff on the following: (1) the price of books in each country ; (2) the quantity of books 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.

D= 50-10P

S=10+10P

D*=60-10P

S*=20+10P