The United States wheat market is shown in Figure 17P-3. Suppose the U.S. wants to protect its wheat industry by imposing a tariff of $1/bushel on foreign wheat, which currently sells at world price $4/bushel.

a. Graph consumer and producer surplus after the $1/bushel tariff is imposed.
b. How much revenue does the U.S. government collect from the tariff?
c. Graph the deadweight loss associated with the tariff.

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Price (S 10 World price D 20 4 60 O 100120 140 160 180 Quantity of wheat (millions)