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.The tariff revenue collected by the U.S.government is represented by which area in the figure?

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.The tariff revenue collected by the U.S.government is represented by which area in the figure?

Quizplus · Accepted Answer

The tariff revenue collected by the U.S. government is equal to the amount of the tariff ($1 per bushel) multiplied by the quantity of imported wheat (Q2-Q1). This is represented by the rectangle labeled as "D".

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