Figure 9.5.2
-Refer to Figure 9.5.2 above. Now suppose an import quota of 3000 trucks is imposed. The quota will decrease the revenue of foreign firms by:
A) $0.
B) $2,500.
C) $7,500,000.
D) $11,250,000.
E) $13,125,000.

Question

Figure 9.5.2
-Refer to Figure 9.5.2 above. Now suppose an import quota of 3000 trucks is imposed. The quota will decrease the revenue of foreign firms by:
A) $0. 
B) $2,500. 
C) $7,500,000. 
D) $11,250,000. 
E) $13,125,000.

Quizplus · Accepted Answer

An import quota limits the number of trucks foreign firms can sell, reducing their sales and revenue. The revenue loss is calculated by multiplying the quota limit (3000 trucks) by the price per truck.

Figure 9.5.2 -Refer to Figure 9.5.2 Above. Now Suppose an Import Quota