Econland produces 145 thousand tons of soy beans each year but imports another 55 thousand tons despite a 20% tariff on imports which raises the domestic price to $6/ton from the world price of $5/ton.The government's economists estimate that cutting the tariff in half would increase consumer demand by 15% due to lower prices but that this would depress domestic production by 5%.

a)How will government revenue change if the tariff is reduced from 20% to 10%? (3 marks)

b)What would the impact be on consumer surplus from the proposed tariff reduction? (3 marks)

How can international trade enhance the growth rate of long-run aggregate supply