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, the domestic consumers:
A) gain $7.5 million.
B) lose $21.25 million.
C) lose $82.5 million.
D) gain $97.75 million.
Correct Answer:
Verified
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