-The above figure shows the market for rice in Japan.s₂ represents the domestic supply curve,and s₁ represents the world supply curve.A $1 per unit tariff has the same effect on producer and consumer surplus as a quota of

Question

Quizplus · Accepted Answer

The correct answer is A because a $1 per unit tariff and a quota of 10 units both reduce the quantity of rice imported by 10 units. This has the same effect on producer and consumer surplus.

-The Above Figure Shows the Market for Rice in Japan