Graph 9-9
-In Graph 9-9, producer surplus after the tariff would be:
A)G
B)C + G
C)A + C + G
D)A + B + C + G

Question

Graph 9-9 
-In Graph 9-9, producer surplus after the tariff would be:
A)G 
B)C + G 
C)A + C + G 
D)A + B + C + G

Quizplus · Accepted Answer

Producer surplus after the tariff is represented by the area between the world price line and the supply curve after the tariff (shown as C+G in the graph). Therefore, the correct answer is B. Option A only represents the producer surplus before the tariff, option C includes the consumer surplus and option D represents the total welfare gain which includes both producer and consumer surplus.

Graph 9-9 -In Graph 9-9, Producer Surplus After the Tariff Would Be