-Refer to the diagram above.If this country imposes an import quota of 500 pairs of shoes per year,then consumer surplus in equilibrium is equal to ____________________ per year.

Question

Quizplus · Accepted Answer

The consumer surplus is calculated as the area of the triangle above the price level and below the demand curve. With an import quota, the equilibrium price and quantity change, and the consumer surplus is reduced. The correct calculation based on the diagram would lead to a consumer surplus of $15,625.

-Refer to the Diagram Above