-The above figure shows the market for rice in Japan where price is expressed in dollars.S represents the domestic supply curve,and the horizontal line at P = 1 represents the world supply curve.Suppose a free market exists.If a $1 per unit tariff is imposed on imported rice,the quantity of imported rice will decrease by

Question

Quizplus · Accepted Answer

The quantity of imported rice will decrease by the difference between the quantity imported before the tariff (Q₁) and the quantity imported after the tariff (Q₂). This is represented by the formula Q₂ - Q₁, which corresponds to choice B.

-The Above Figure Shows the Market for Rice in Japan