I try $to$ create a solution, but i cannot succeed. Let $me$ explain,

The Initial Consumer Surplus $E+D+C$

The Initial Producer Surplus $A+B$

Total Surplus $A+B+C+D+E$

$--------------------$

Without the Quota

The Final Consumer Surplus $E$

The Final Producer Surplus $A+B+C+D+F+G$

Total Surplus $A+B+C+D+E+F+G$

With the Quota

The Final Consumer Surplus $E$

The Final Producer Surplus $A+B+C+D+F$

Total Surplus $A+B+C+D+E+F$

the Area $ofFis$ met $by$ Government

the Area lost $by$ the Producers $(G)is$ also met $by$ Government

$So$ total cost for the governement has $tobeF+G,$ but $itis$ not correct, could you enlighten $me?$ Please solve the question with AREA METHOD.

Figure $9\mathrm{.}13$

$,$

The Wheat Market $in1985$

wheat was much lower

than $in1981,$ because

the market$-$clearing price

was only $$1\mathrm{.}80.$

$To$ increase the price $to$

$$3\mathrm{.}20,$ the government

bought $466$ million

bushels and also

imposed a production

quota $of2425$ million

bushels.

$1985$ Supply: $Q_S=1800+240P$

$1985$ Demand: $Q_D=2580-194P$

$2425=2580-194P+Q_g$

$Q_g=-155+194P$

$Q_g=-155+194($$$3\mathrm{.}20)=466$ million bushels

Cost $to$ the government $=$$$3\mathrm{.}20466$ million $=$$$1491$ million