(Figure: The Home Monopolist's Market) The graph shows a home monopolist market with free trade and with the imposition of a tariff. After the imposition of the tariff, the home monopolist's production increased by ______ and the country's producer surplus increased by ________.

Question

Quizplus · Accepted Answer

After the imposition of the tariff, the home monopolist's production increased from 50 units to 85 units (35 units increase), as shown by the vertical distance between points B and F. The country's producer surplus increased by the area of the green shaded region, which is equal to $6,475. Therefore, the correct answer is D (35 units; $6,475).

(Figure: the Home Monopolist's Market) the Graph Shows a Home