Question

Price (dollars per bouquet) The supply of roses in the United States is made up of U.S. grown roses and imported roses. With no international trade, the price is $30 a bouquet and 300,000 bouquets a year are produced S+quota The graph shows the U.S. market for roses when the U.S. government puts an import quota on roses. The U.S. consumer surplus that is redistributed to U.S. producers is and the import quota creates a deadweight loss equal to 1 ... 20 ............... ... B O CAFE World price O A. area B + C +Farea D OB. area B, area D O c. area B + C + D + E zero OD. area ; area C + E O E. area B, area D + E D D 600 100 200 300 400 500 Quantity (thousands of bouquets per month)

Answer 1

US CONSUMER SURPLUS that a redistribute to uS producers is B and the import quota creates a deadweight loss equal to (D+E)

Option E us right.

ugo IVO Date Pemen supply opnie Domate prie Demone 05 supply 092Simeo ps son. & New Domestic price - World prive

FS is foreign producer surplus.

And the blank area are the lost of initial total surplus or deadweight loss.

In our question diagram that area is D and E.