Home imposes a specific tariff of 1.5 on books imports.

a. Determine and graph the effects of the 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.