Scenario: the Domestic Supply and Demand of a Good in the United

Scenario: The domestic supply and demand of a good in the United States is shown in the figure below. Suppose the world price of this good is $4. Suppose the United States is considering levying a $2 tariff per unit on imports of this good.

-Refer to the scenario above.The change in producer surplus after the tariff is ________.

A) $10
B) $20
C) $40
D) $80