Tariff on Imported Good a. Suppose the oountry Home has the following demand and supply functions for a good 3: [you may assume the price p will be such that neither supply nor demand are negative}; Home Supply: (E; = 4-D + 3p Home Demand: 03 = SD 2p Home production of the good is not enough to satisfy the Home demand, so Horne also imports good it from Foreign. Dene Home's import demand for good it. little as Import Demand: or = of: of; Write the import demand equation lid in terms of the price. 11} h. Suppose the oountry Foreign has the following demand and supply functions for the good I {you may assume the price p will be such that neither supply nor demand are negative}: Foreign Supply: {23 = All] + 10p Foreign Demand: Q? = 1M! - lp Dene Foreign's export supply of good it, Fit. as Export Supply: EX = Q Q}? Write the export supply equation Ex in terms of the prioe. 11} c. Find the price such that Home's demand for imports of good a equals Foreign's export supply of good a. Denote this price as p""r [world price]. [2} d. Since this is a competitive market, the Home producers of good 3t also charge p'\"r for good it. Find the amount of good if. that Home produces and the amount that Home oonsu mes at price p\". 12}