Let "Home" be a small country with linear demand and supply curves for a good. Home import the good when at free trade. Imagine starting at free trade, the government of Home chooses to increase the production by units.

a) What production subsidy would achieve that goal? What would be the associated distortion?

b) What tariff achieves that goal? What would be the associated distortion?

c) Between the two policies of part (a) and (b), which one would you recommend to the government of Home? If the government followed the recommendation you gave, what do you foresee would be an impediment to the Home's government?