Question: 30 Price of Com (dollars) P1 Q2 Q4 Quantity (tons of corn) 13. Refer to the figure above. If the world equilibrium price is P1

30 Price of Com (dollars) P1 Q2 Q4 Quantity (tons of corn) 13. Refer to the figure above. If the world equilibrium price is P1 and a tariff equal to P2 - P1 is imposed on each ton of imported corn, what is the loss to the economy when compared to free trade? a. (P2 - P1)(Q3 - Q2) b. 1/2 ( P 2 - P 1 ) ( Q 2 - Q 1) + 3/2 ( P2 - P 1) (Qs - Q4) c. (P3 - P1) + (Q5 - Q2) d. The welfare loss is zero. e. (P2 - P1) - (Q4 - Q2) Price Q1 Q2 Q3 Q4 Quantity

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