The figure above shows domestic supply and demand for a good in a small country, together with several prices and quantities labeled on the axes.

Initially, with free trade, the country faces a world price equal to P$2.$ Using the prices and quantities as well as the areas labeled in the figure as appropriate answer the following.

Suppose that the country now limits imports with a quota that, as a result, rises domestic price to P$3.$ Using the information, what size ad valorem tariff, t$,$ would have done the same effect as the quota?

Question $2$ options:

$($P$3-$P$1)$

$($P$3-$P$2)/$P$2*100$

$($P$2-$P$1)$

$($P$3-$P$1)/$P$1*100$