Figure 9-5
-When a country that imports a particular good imposes an import quota on that good,
A)consumer surplus increases and total surplus increases in the market for that good.
B)domestic sellers and domestic buyers become worse off.
C)the domestic quantity supplied decreases.
D)consumer surplus decreases and total surplus decreases in the market for that good.

Question

Figure 9-5 
-When a country that imports a particular good imposes an import quota on that good,
A)consumer surplus increases and total surplus increases in the market for that good. 
B)domestic sellers and domestic buyers become worse off. 
C)the domestic quantity supplied decreases. 
D)consumer surplus decreases and total surplus decreases in the market for that good.

Quizplus · Accepted Answer

Imposing an import quota reduces the supply of the imported good, leading to higher prices. This decrease in consumer surplus and total surplus in the market because consumers pay more for less quantity, and the market becomes less efficient.

Figure 9-5 -When a Country That Imports a Particular Good Imposes an Good