The figure given below shows the domestic demand (Dd) and supply (Sd) curves of mopeds in a country before an import quota is imposed by the government. After the imposition of quota, the total available supply curve becomes Sd + QQ.
After the quota is imposed by the government, the domestic producers:
A) lose $2.5 million.
B) gain $27.5 million.
C) gain $42.5 million.
D) lose $80 million.
Correct Answer:
Verified
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