2.80- 2.60 a 2.40- Supply 2.20 G 으 200 billion Consider the market for ethanol in the United States depicted in the figure to the right. Assume the world price of ethanol is $0.60 per gallon, and at that once the United States can buy as much ethanol as it wants without causing the world price to rise Now suppose a quota eliminating trade is imposed by the government. What is the dollar amount of the change in consumer surplus as a result of the quota? S (Enter a numeric response using a real number rounded to two decimal places using the correct sign) 1.80 1.60 21.40 1.20 1.00 0.80 P 0.60- 0.40- 020 0.00- 1 2 3 4 5 6 Demand Quantity of ethanol (billion gallons per year)
2.80- 2.60 a 2.40- Supply 2.20 G 으 200 billion Consider the market for ethanol in the United States depicted in the figure to the right. Assume the world price of ethanol is $0.60 per gallon, and at that once the United States can buy as much ethanol as it wants without causing the world price to rise Now suppose a quota eliminating trade is imposed by the government. What is the dollar amount of the change in consumer surplus as a result of the quota? S (Enter a numeric response using a real number rounded to two decimal places using the correct sign) 1.80 1.60 21.40 1.20 1.00 0.80 P 0.60- 0.40- 020 0.00- 1 2 3 4 5 6 Demand Quantity of ethanol (billion gallons per year)
Principles of Microeconomics
7th Edition
ISBN:9781305156050
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter3: Interdependence And The Gains From Trade
Section: Chapter Questions
Problem 9PA
Related questions
Question
Please give me correct answer and full explanation with calculation Note:-
Please avoid using ChatGPT and refrain from providing handwritten solutions; otherwise, I will definitely give a downvote. Also, be mindful of plagiarism.
Answer completely and accurate answer.
Rest assured, you will receive an upvote if the answer is accurate.
![Consider the market for ethanol in the United States depicted in the figure to the right. Assume the
world price of ethanol is $0.60 per gallon, and at that once the United States can buy as much
ethanol as it wants without causing the world price to rise
Now suppose a quota eliminating trade is imposed by the government
What is the dollar amount of the change in consumer surplus as a result of the quota? $
(Enter a numeric response using a real number rounded to two decimal places using the
correct sign)
a
2.80
2.60-
a
2.40-
Supply
2.20
G
2.00
billion.
1.80
1.60-
1.40
1.20
1.00-
0.80
0.60-
0.40
0.20
0.00-
0
2
4 5
Quantity of ethanol (billion gallons per year)
Demand
7](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe5cf9baf-a683-4ce8-a35e-eea4cef56920%2F265bfe1a-7f41-4782-9571-54160e4afff9%2F8rk1ckt_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Consider the market for ethanol in the United States depicted in the figure to the right. Assume the
world price of ethanol is $0.60 per gallon, and at that once the United States can buy as much
ethanol as it wants without causing the world price to rise
Now suppose a quota eliminating trade is imposed by the government
What is the dollar amount of the change in consumer surplus as a result of the quota? $
(Enter a numeric response using a real number rounded to two decimal places using the
correct sign)
a
2.80
2.60-
a
2.40-
Supply
2.20
G
2.00
billion.
1.80
1.60-
1.40
1.20
1.00-
0.80
0.60-
0.40
0.20
0.00-
0
2
4 5
Quantity of ethanol (billion gallons per year)
Demand
7
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps with 2 images
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
![Principles of Microeconomics](https://www.bartleby.com/isbn_cover_images/9781305156050/9781305156050_smallCoverImage.gif)
Principles of Microeconomics
Economics
ISBN:
9781305156050
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
![Principles of Microeconomics](https://www.bartleby.com/isbn_cover_images/9781305156050/9781305156050_smallCoverImage.gif)
Principles of Microeconomics
Economics
ISBN:
9781305156050
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning