-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 loss in social welfare is
A) a + b + c + d + i + j.
B) a.
C) c + e.
D) a + b + c + d.

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 loss in social welfare is
A) a + b + c + d + i + j. 
B) a. 
C) c + e. 
D) a + b + c + d.

Quizplus · Accepted Answer

If imported rice is banned, the loss in social welfare is represented by the area of the triangles and rectangles that show the difference between the domestic supply and the world supply, which is a + b + c + d. This area represents the loss in consumer and producer surplus due to the higher prices and lower quantities available without imports.

-The Above Figure Shows the Market for Rice in Japan