Use the following graph where Sd and Dd are the domestic sup

Use the following graph, where S_d and D_d are the domestic supply and demand for a product and P_c is the world price of that product, to answer the next question.

S_d + Q is the product supply curve after an import quota is imposed. A quota of y?w will result in an increase of producer surplus equal to area(s)

Solution

The increase of producer surplus is equal to area E + F + K. Producer surplus is the area below the price and above the supply curve. With quota the supply curve is Sd+ Q