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Figure: The Market for Clams
-(Figure: The Market for Clams) Look at the figure The Market for Clams. The government imposes a quota limiting sales of clams to 1,000 pounds. According to the figure, the quota rent per pound in this case is:
A) $7.50.
B) $5.00.
C) $2.50.
D) The quota rent cannot be determined from the information provided.

Question

Use the following to answer question:
Figure: The Market for Clams 
-(Figure: The Market for Clams) Look at the figure The Market for Clams. The government imposes a quota limiting sales of clams to 1,000 pounds. According to the figure, the quota rent per pound in this case is:
A) $7.50. 
B) $5.00. 
C) $2.50. 
D) The quota rent cannot be determined from the information provided.

Quizplus · Accepted Answer

The quota rent per pound is the difference between the price consumers are willing to pay and the price producers receive. According to the figure, this difference is $2.50 per pound when the quota limits sales to 1,000 pounds.

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