Figure 6.3 represents the Iraqi computer market.Assume Iraq purchases all of its computers from the United States.
Figure 6.3 Iraqi Computer Market and Economic Sanctions

-Consider Figure 6.3.Of the quota-induced change in Iraqi consumer surplus,the amount of the change in Iraq's consumer surplus that is transferred to other sectors of Iraq's economy is captured by the United States as:

Question

Figure 6.3 represents the Iraqi computer market.Assume Iraq purchases all of its computers from the United States.
Figure 6.3 Iraqi Computer Market and Economic Sanctions
 
-Consider Figure 6.3.Of the quota-induced change in Iraqi consumer surplus,the amount of the change in Iraq's consumer surplus that is transferred to other sectors of Iraq's economy is captured by the United States as:

Quizplus · Accepted Answer

When Iraq purchases all its computers from the United States, a quota on the amount of computers imported would increase the price of computers and reduce the quantity demanded leading to a decrease in consumer surplus. However, the United States would benefit from this reduction in Iraqi consumer surplus by capturing it as export revenue. Therefore, the correct choice is option B) Export revenue.

Figure 63 Represents the Iraqi Computer Market