Figure 4.4 represents the market for gasoline in a small nation. The free trade world price of gasoline is $3.50. Suppose this small nation imposes a tariff on gasoline of $.50 per gallon. The change in producer surplus would be
a. area a + b.
b. area a.
c. area a + b + f.
d. area a + b + f + g + h.
b. area a.
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What will be an ideal response?
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