If a Small Country Produces 100 Units of Product X

Multiple Choice

If a small country produces 100 units of product X and consumes 140 units at a price of $2 under free trade, but the imposition of a tariff leads to a situation where domestic price is $2.20, domestic production is 120 units, and domestic consumption is 125 units, then the gain in producer surplus in this country because of the tariff is __________.

A) $1.00
B) $22.00
C) $24.00
D) $26.50