a. Using partial-equilibrium analysis, show that an import tax (of magnitude, say, "t") is fully equivalent to the combination of a consumption tax and a production subsidy (both applied in the same magnitude "t"). Note: To show full equivalence, it must be demonstrated that equilibrium prices and all quantities are the same in the two cases as are the surpluses that accrue to all relevant parties. b. Using general-equilibrium analysis in the context of a small open-economy producing two goods (importable and exportable), argue that a tax on imports is equivalent to a tax on exports (Lerner Symmetry theorem). Hint: Consider the effect that the two policies (import tax and export tax) have on relative prices c. It is often argued that devaluation of domestic currency acts as a tax on imports and a subsidy on exports. Explain. What would you conclude when you combine this with the Lerner Symmetry theorem (see (b) above)? Illustrate in general equilibrium