-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.A $1 per unit tariff has the same effect on producer and consumer surplus as a quota of

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.A $1 per unit tariff has the same effect on producer and consumer surplus as a quota of A) 25 units. B) 30 units. C) 35 units. D) 65 units.

Quizplus · Accepted Answer

A $1 per unit tariff reduces the quantity of imports by the same amount as a quota that limits imports to 35 units, thus having the same effect on producer and consumer surplus.

-The Above Figure Shows the Market for Rice in Japan