Exhibit 33-12

-Refer to Exhibit 33-12. P_W is the price that exists in a free world market. If the U.S. imposes a quota to reduce imports to Q₄ - Q₃, price will rise to

Name: Exhibit 33-12 -Refer to Exhibit 33-12. P W is the price that exists in a free world market. If the U.S. imposes a quota to reduce imports to Q 4 - Q 3 , price will rise to
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Question

Exhibit 33-12 -Refer to Exhibit 33-12. P_W is the price that exists in a free world market. If the U.S. imposes a quota to reduce imports to Q₄ - Q₃, price will rise to

Quizplus · Accepted Answer

The quota reduces the supply of imports, shifting the supply curve to the left. This causes the price to rise to P1.

Exhibit 33-12 ​

Exhibit 33-12