Scenario: Suppose the world price is $2 per bushel, and U.S. wheat growers are dissatisfied with the level of wheat imports into the United States. They lobby Congress for a $1 per bushel tariff on imported wheat. The following figure shows the U.S. wheat market.

-Refer to the scenario above.How much wheat is imported into the United States after the imposition of the tariff?

Question

Scenario: Suppose the world price is $2 per bushel, and U.S. wheat growers are dissatisfied with the level of wheat imports into the United States. They lobby Congress for a $1 per bushel tariff on imported wheat. The following figure shows the U.S. wheat market.
 
-Refer to the scenario above.How much wheat is imported into the United States after the imposition of the tariff?

Quizplus · Accepted Answer

The correct answer is A.The tariff reduces the quantity of wheat imported into the United States from 10 million metric tons to 3 million metric tons.

Scenario: Suppose the World Price Is $2 Per Bushel, and U.S