If the country illustrated in Figure 17-12 is initially trading without restrictions at a world price of $1.00, the gain in producer surplus as a result of a tariff of $0.50 per unit is represented by area

A) c + h
B) h
C) c
D) c + g
E) g

Producer Surplus

The difference between the amount producers are willing to sell a good for and the actual amount received from the sale of that good.

Tariff

A tax imposed by a government on imported goods.

Restrictions

Limitations or regulations imposed to control or limit certain actions or activities within a specific context.