Consider the following illustration. What does consumer surplus equal under
trade with a tariff?
S
A
Domestic
Supply
S World + Tariff
$24
C
E
F
G
H
S World
$20
I
J
K
L
M
N
Domestic
Demand
A + B
2,000
4,000
5,000
6,500
A + B + C + E + F + G
A + B + C + E + F + G + I + J + K + L + M
E + F + G
Q