Suppose that the United States currently both produces kumquats and imports them. The U.S. government then decides to restrict international trade in kumquats by imposing a quota that allows imports of only six million pounds of kumquats into the United States each year. The figure shows the results of imposing the quota. Fill in the following table (enter all numeric responses rounded to the nearest penny for prices and as whole numbers for quantities). Without Quota World price of kumquats U.S. price of kumquats Quantity supplied by U.S. firms Quantity demanded Quantity imported Area of consumer surplus Area of domestic producer surplus Area of deadweight loss million million million With Quota million million million

Suppose that the United States currently both produces kumquats and imports them. The U.S. government then decides to restrict international trade in kumquats by imposing a quota that allows imports of only six million pounds of kumquats into the United States each year. The figure shows the results of imposing the quota. Fill in the following table (enter all numeric responses rounded to the nearest penny for prices and as whole numbers for quantities). Without Quota World price of kumquats U.S. price of kumquats Quantity supplied by U.S. firms Quantity demanded Quantity imported Area of consumer surplus Area of domestic producer surplus Area of deadweight loss million million million With Quota million million million

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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