Figure 19-3
Since 1953 the United States has imposed a quota to limit the imports of peanuts. Figure 19-3 illustrates the impact of the quota.
-Refer to Figure 19-3.With a quota in place,what is the quantity consumed in the domestic market?

Question

Figure 19-3
  Since 1953 the United States has imposed a quota to limit the imports of peanuts. Figure 19-3 illustrates the impact of the quota.
-Refer to Figure 19-3.With a quota in place,what is the quantity consumed in the domestic market?

Quizplus · Accepted Answer

The quota limits import to 6 million pounds, so the supply curve shifts left and intersects the demand curve at a price of $0.70 per pound and a quantity of 34 million pounds. This is the new equilibrium quantity consumed in the domestic market.

Figure 19-3 Since 1953 the United States Has Imposed a Imposed