Consider two countries: home and foreign that consume and trade wheat. Home has the following supply and demand curves: S = 30 + 10P and D = 60-5P whereas Foreign

has the following supply and demand curves: S = 20+10P and D* = 40-5P. (Approximate everything to two decimal places) a) What is the equilibrium price and quantity of wheat at home without any trade? b) Suppose that Foreign as a comparative advantage in producing wheat and they export it to Home.What is the price of wheat with free trade, and quantity of wheat imported by home? illustratein a graph. c) Suppose Home wants to became more protectionist towards its local suppliers and decides to add a $0.5 tariff on the price of imported wheat. What would Home consumers pay now as a result of the tariff and what is the new size of imports? d) Calculate the loss in consumer surplus, gain in producer surplus and the revenue for the govt of the Home country as a result of the tariff?