The figure below shows the demand (D) and supply (S) curves of corn syrups.
Figure 20.3

-In Figure 20.3, with an import quota of 30 gallons of corn syrup, what is the new equilibrium quantity demanded?

Question

The figure below shows the demand (D) and supply (S) curves of corn syrups.
Figure 20.3
 
-In Figure 20.3, with an import quota of 30 gallons of corn syrup, what is the new equilibrium quantity demanded?

Quizplus · Accepted Answer

An import quota limits the quantity of a good that can be imported, affecting the supply and demand balance. With a quota of 30 gallons, the equilibrium quantity demanded adjusts to the new supply constraints, which is 50 gallons in this scenario.

The Figure Below Shows the Demand (D) and Supply (S)