The deadweight loss in the case of quotas is:

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Deadweight loss in the case of quotas is higher than the one in the case of tariffs. Quotas limit the amount of a good that can be imported, whereas tariffs impose a tax on imported goods. Quotas create a shortage in the domestic market, which leads to higher prices and lower quantities, resulting in a higher deadweight loss. Moreover, quotas often lead to rent-seeking behavior, as domestic producers compete for a limited number of import licenses, further increasing the deadweight loss.

The Deadweight Loss in the Case of Quotas Is