Use the following to answer question:
-(Figure: The Market for SUVs)Use Figure: The Market for SUVs.A quota of _____ will bring about the same price and output in the market for yachts as would an excise tax of $60,000.

Question

Use the following to answer question: 
-(Figure: The Market for SUVs)Use Figure: The Market for SUVs.A quota of _____ will bring about the same price and output in the market for yachts as would an excise tax of $60,000.

Quizplus · Accepted Answer

A quota of 2,000 will bring about the same price and output in the market for yachts as would an excise tax of $60,000. This is because a quota of 2,000 will reduce the supply of yachts by 2,000 units, which will cause the price of yachts to increase by $60,000.

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