-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 imported rice is banned,the change in domestic producer surplus equals

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 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 will determine the market supply. The domestic producer surplus will increase by the area between the domestic supply curve and the world supply curve up to the new equilibrium quantity, which is f + g.

-The Above Figure Shows the Market for Rice in Japan