Problem 4 Consider a model with two countries, Home and Foreign, and two goods, X and Y. The demand curve for each good in each country is given by: D=50P Where D is the quantity demanded and P is the price. The supply curve for Y in Home and for X in Foreign is given by: Q3 = P While the supply curve for X in Home and for Y in Foreign is given by: Q3 = 4 + P Where in each case Q3 stands for the quantity supplied. a. Find the Nash equilibrium tariffs for each country in this model. Display all your calcu- lations. b. Calculate the change in social welfare in each country if we move from Nash equilib- rium tariffs to free trade. Illustrate with a diagram. c. Given your results, would Home and Foreign prefer to negotiate trade policy, or would they prefer to maintain their sovereignty and discretion by leaving each country to set its trade policy on its own