Suppose the government is considering imposing either a tariff or a quota on canned peaches. Assume that the proposed quota has the same effect on the U.S. price of canned peaches as the proposed tariff. Use the graph to answer the following questions.

a. If the government imposes a tariff, which area shows the government tariff revenue?
b. If the government imposes a quota, which area shows the gain to foreign producers of canned peaches?
c. As a consumer of peaches, would you prefer the government impose the tariff or the quota? Briefly explain.

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Price U.S. supply U.S. price = World price + Tariff Canned peaches quota Tariff A в World price U.S. demand Quantity of canned peaches