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Question: The following graph shows the effect on consumer surplus, producer surplus, government tariff revenue, and economic surplus of a tariff of $1 per unit on imports of plastic combs into the United States. Use the areas denoted in the graph to answer the following questions.
a. Which area shows the losses to U.S. consumers of buying a smaller quantity of combs than they would have if they could have purchased them at the world price?
b. Which area shows the losses to U.S. consumers of having to buy combs from U.S. producers who are less efficient than foreign producers?
c. Which areas show the deadweight loss to the U.S. economy as a result of the tariff on combs?
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