What happens to consumer surplus when an import quota is imposed, and how is this represented on a supply and demand graph?

• A. Consumer surplus increases, represented by a larger area under the demand curve.
• B. Consumer surplus decreases, represented by a larger area under the supply curve.
• C. Consumer surplus remains unchanged, represented by the same area under the demand curve.
• D. Consumer surplus decreases, represented by a smaller area under the demand curve.

Answer: (D)