Exhibit 33-12

-Refer to Exhibit 33-12. P_W is the price that exists in a free world market. A quota is imposed and imports are Q₄ - Q₃. Importers gain revenues equal to the area __________.

Question

Exhibit 33-12 -Refer to Exhibit 33-12. P_W is the price that exists in a free world market. A quota is imposed and imports are Q₄ - Q₃. Importers gain revenues equal to the area __________.

Quizplus · Accepted Answer

Importers gain revenues equal to the area GHJK because this area represents the difference between the world price and the domestic price over the quantity of imports allowed by the quota.

Exhibit 33-12 ​

Exhibit 33-12