Question 5. a. In trade theory how do we usually distinguish a small country from a large country ? b. Consider two small countries, Home and Foreign that are initially in a free trade (tariff-free) situation. Home now decides to impose a tariff t on imports from Foreign. On a demand-supply diagram for the home market show there is a deadweight loss incurred by Home. c. Now suppose Home is a large country and it decides to impose a tariff t on the Foreign country. On a demand-supply diagram show the welfare effect on the Home country from applying the tariff. d. Can we unambiguously conclude that the (large) Home country is better Sample Final Explain using your diagram