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The Following Figure Illustrates the Demand and Supply Curves for PCs

Question 14

Multiple Choice

The following figure illustrates the demand and supply curves for PCs in a small country.
The following figure illustrates the demand and supply curves for PCs in a small country.    -Which of the following is true for the above quota? A)  Consumers lose area a. B)  The government would receive area e if it auctions the quota. C)  Domestic firms gain areas 'b + d. D)  There is no loss to the country's overall welfare. E)  There is a gain in the country's welfare.
-Which of the following is true for the above quota?


A) Consumers lose area a.
B) The government would receive area e if it auctions the quota.
C) Domestic firms gain areas 'b + d.
D) There is no loss to the country's overall welfare.
E) There is a gain in the country's welfare.

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