Upper S equals $20$ plus $20$ Upper PS$=20+20$P

and

Upper D equals $100$ minus $20$ Upper PD$=10020$P

are$$ Home's supply and demand curves for wheat.

Upper S Superscript star Baseline equals $40$ plus $20$ Upper PS$*=40+20$P

and

Upper D Superscript star Baseline equals $80$ minus $20$ Upper PD$*=8020$P

are$$ Foreign's supply and demand curves for wheat.

Part $2$

With free trade the price of wheat is

$$$$1\mathrm{.}501\mathrm{.}50.$

$($Enter

your response rounded to the nearest

penny$.)$

Part $3$

Suppose home imposes a specific tariff of$$ $$0\mathrm{.}50$ on wheat. Home consumers will now pay

$$$$22$

and$$ foreign's export price is

$$$$1\mathrm{.}501\mathrm{.}50.$

$($Round your responses rounded to the nearest

penny.$)$