-Assuming there is no tariff,the imposition of the import quota:
A)will increase the revenue of the Canadian government by areas G + H
B)will increase the revenue of the Canadian government by areas E + F + G + H + J
C)leads to an extra revenue to foreign producers equal to areas G + H, which partly counteracts the loss they bear because of lower quantities supplied
D)will increase the revenues of foreign producers by area E
E)will increase the revenues of foreign producers by area F + J

Question

-Assuming there is no tariff,the imposition of the import quota:
A)will increase the revenue of the Canadian government by areas G + H 
B)will increase the revenue of the Canadian government by areas E + F + G + H + J 
C)leads to an extra revenue to foreign producers equal to areas G + H, which partly counteracts the loss they bear because of lower quantities supplied 
D)will increase the revenues of foreign producers by area E 
E)will increase the revenues of foreign producers by area F + J

Quizplus · Accepted Answer

An import quota limits the quantity of goods that can be imported, which can lead to higher prices. Foreign producers may benefit from these higher prices, gaining extra revenue represented by areas G + H.

-Assuming There Is No Tariff,the Imposition of the Import Quota