Consider the figure below, where demand equals supply at the equilibrium price p* and quantity Q*. The government is considering two different policies to reduce the quantity traded in the market: (i) impose a quota, so the maximum quantity sold would be Q, and (ii) set a tax of $t per unit. p. $ per unit Supply t Ps - - Demand Q Q* Q. Units per year Select the correct answer I. II. III. O The change in welfare would be the same with both policies O The government would be indifferent to either policy Consumers would be indifferent to either policy The government would prefer Policy () O Consumers would prefer Policy ()Step 1 of 1 Ans Step 1 7) option (c) is correct answer Consumer would be indifferent to either policyr Explaination; When government imposed unit tax then consumer surplus will reduce becouse seller will shift some part of tax burden on consumer and when goverment uses import quota then also consumer surplus will reduce by same amount so it means consumer is indifferent in these policies. Final Answer Final answer; option (c) is correct answer Consumer would be indifferent to either policyr