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.In response to Iraq's armed invasion of neighboring countries, suppose the United States imposes a partial embargo that limits exports to Iraq to 10 computers.The export quota leads to a(n) ______________ in the price of computers equal to $______________ and a(n) ______________ in consumer surplus equal to $______________.

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.In response to Iraq's armed invasion of neighboring countries, suppose the United States imposes a partial embargo that limits exports to Iraq to 10 computers.The export quota leads to a(n) ______________ in the price of computers equal to $______________ and a(n) ______________ in consumer surplus equal to $______________.

Quizplus · Accepted Answer

The imposition of an export quota typically leads to an increase in the price of the limited goods due to reduced supply in the foreign market and a decrease in consumer surplus as consumers have to pay more for the same goods or can afford fewer goods at the higher prices.

Figure 63 Represents the Iraqi Computer Market