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 price the United States can buy as much ethanol as it wants without causing the world price to rise.

Now suppose a quota of $1 million is imposed by the government.

-What is the dollar amount of the change in consumer surplus as a result of the tariff?? ? -What is the dollar amount of the change in producer surplus as a result of the tariff? ? -What is the dollar amount of the dead weight? loss? ?

2.80- 2.60- 2.40- 2.20- Alddns 2.00- 1.60- Price of ethanol (per gallon) 1.40- 1.20- 0.80- 0.60- 0.40- 0.20- 0.00- Demand 0 2 4 5 6 8 Quantity of ethanol (billion gallons per year)