Figure 9-15
-Refer to Figure 9-15.Producer surplus with the tariff is
A)G.
B)C + G.
C)A + C + G.
D)A + B + C + G.

Question

Figure 9-15 
-Refer to Figure 9-15.Producer surplus with the tariff is
A)G. 
B)C + G. 
C)A + C + G. 
D)A + B + C + G.

Quizplus · Accepted Answer

Producer surplus with the tariff is the area between the supply curve and the world price (MC) curve above the tariff level. In this case, it is the area C + G. Therefore, the correct answer is B. Options A, C, and D include additional areas that do not represent producer surplus.

Figure 9-15 -Refer to Figure 9-15.Producer Surplus with the Tariff Is