I would expect wheat prices to decline since the supply of wheat is greater than expected. Wheat commodity markets are very competitive, so the initial 35 percent increase was already reflected in the current price of wheat. This is graphically represented by a shift to the right in the supply of wheat as shown to the right. The size cars in Italy are most likely much smaller than in the United States. Italians would be driven to conserve gasoline and thus demand smaller cars that use less gasoline.
Consumer surplus is the area above equilibrium price and below the demand curve.
Numerically this is equal to 187.50. Numerically this is 62.50. An import quota will increase the price of imported sugar. The graph on the right shows how a higher imported sugar price increases the price that domestic producers can charge and increase the quantity they can supply to the market. For example, at P0, domestic consumers demand the quantity D-A from importers and quantity A from domestic producers After the quotas, the import price is P1.