Figure 5.3 illustrates the apple market for Sweden,assumed to be a "small" country that is unable to affect the world price.SSweden is the domestic supply and DSweden is the domestic demand.SSweden+Quota is Sweden's supply schedule with an import quota.
Figure 5.3.Sweden's Apple Market

-Consider Figure 5.3.Assume that Swedish import companies behave as competitive buyers while foreign export companies behave as a monopoly seller.Compared to free trade,Sweden's import quota results in domestic welfare:

Question

Figure 5.3 illustrates the apple market for Sweden,assumed to be a "small" country that is unable to affect the world price.SSweden is the domestic supply and DSweden is the domestic demand.SSweden+Quota is Sweden's supply schedule with an import quota.
Figure 5.3.Sweden's Apple Market
 
-Consider Figure 5.3.Assume that Swedish import companies behave as competitive buyers while foreign export companies behave as a monopoly seller.Compared to free trade,Sweden's import quota results in domestic welfare:

Quizplus · Accepted Answer

The import quota restricts the quantity of goods that can be imported, leading to higher prices and reduced consumer surplus in Sweden. The monopoly power of foreign exporters allows them to capture more surplus, resulting in a net welfare loss for Sweden.

Figure 53 Illustrates the Apple Market for Sweden,assumed to Be a a "Small