-The above figure shows the market for rice in Japan.S_Domestic represents the domestic supply curve,and S_world represents the world supply curve.If a $1 tariff is imposed on imported rice,the change in consumer surplus is

Question

-The above figure shows the market for rice in Japan.S<sub>Domestic</sub> represents the domestic supply curve,and S<sub>world</sub> represents the world supply curve.If a $1 tariff is imposed on imported rice,the change in consumer surplus is A) c + d. B) c + d +g. C) a + b + c + d. D) f + g.

Quizplus · Accepted Answer

When a tariff is imposed, the price of imported goods increases, leading to a decrease in consumer surplus. The change in consumer surplus includes the loss of areas c and d, which represent the direct loss from higher prices paid on the now more expensive imports, and area g, which represents the loss from the decreased consumption due to higher prices.

-The Above Figure Shows the Market for Rice in Japan