Figure 7-3 Price per pound US Supply $3.75 A G H 2.75 US Price with Quota B E J M 2.00 C World price (Pw) 1.00 D F K L N US Demand 10 18 28 34 40 Quantity (millions of pounds) Since 1953 the United States has imposed a quota to limit the imports of peanuts. Figure 7- 3 illustrates the impact of the quota. Refer to Figure 7-3. What is the area that represents reduction in value of consumer surplus after the imposition of the quota and the rise in price from $2/pound to $2.75/pound? area B O area E + area M O area | +area J O area B +area E +area | + area J +area M