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Traces of genetically modified rice

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Reference no: EM131217525

In 2006, the European Union (EU) threatened to ban imports of long-grain rice because traces of genetically modified rice were found mixed in to commercial supplies. Instead of a ban, suppose the EU placed a tariff on the import of long-grain rice. Which of the following would be an outcome of this tariff?

A) The price of long-grain rice in the EU would not change.

B) European rice producers would decrease production.

C) Deadweight loss would decrease.

D) The EU would gain tariff revenue.

Reference no: EM131217525

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