-The above figure shows the market for rice in Japan.SDₒmₑstᵢc represents the domestic supply curve,and Swₒᵣld represents the world supply curve.If imported rice is banned,the change in domestic producer surplus equals
A) f.
B) f + g.
C) f + g + h.
D) h.

Question

-The above figure shows the market for rice in Japan.SDₒmₑstᵢc represents the domestic supply curve,and Swₒᵣld represents the world supply curve.If imported rice is banned,the change in domestic producer surplus equals
A) f. 
B) f + g. 
C) f + g + h. 
D) h.

Quizplus · Accepted Answer

If imported rice is banned, the domestic supply curve becomes the relevant supply curve, increasing the producer surplus by the area between the domestic supply curve and the world supply curve, which is f + g.

-The Above Figure Shows the Market for Rice in Japan