Graph 9-3
-In Graph 9-3, after the quota, imports would be equal to:
A)Q₄ minus Q₁
B)Q₃ minus Q₂
C)Q₃ minus Q₁
D)Q₂ minus Q₁

Question

Graph 9-3 
-In Graph 9-3, after the quota, imports would be equal to:
A)Q₄ minus Q₁ 
B)Q₃ minus Q₂ 
C)Q₃ minus Q₁ 
D)Q₂ minus Q₁

Quizplus · Accepted Answer

After the quota is imposed, the quantity of imports allowed would be Q₃, which is the intersection of the demand curve and the supply curve after the quota. Before the quota, the quantity of imports was Q₂, which is the intersection of the demand curve and the world supply curve. Therefore, the difference between the quantity of imports before and after the quota would be Q₃ - Q₂.

Graph 9-3 -In Graph 9-3, After the Quota, Imports Would Be Equal