The graph above shows a small country that can import at the world price of Pw and currently imports (Qd-Qs).Suppose that the government imposes quota of 80% of the current import amount (and suppose that this does not raise the domestic price so much that there will be no trade).
Use the graph above to illustrate the effects of the quota.Show the new areas of consumer surplus,producer surplus,and any other relevant areas,and the deadweight losses due to the quota.Who wins and who loses from the tariff?

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The graph above shows a small country that can import at the world price of Pw and currently imports (Qd-Qs).Suppose that the government imposes quota of 80% of the current import amount (and suppose that this does not raise the domestic price so much that there will be no trade).
Use the graph above to illustrate the effects of the quota.Show the new areas of consumer surplus,producer surplus,and any other relevant areas,and the deadweight losses due to the quota.Who wins and who loses from the tariff?

The Graph Above Shows a Small Country That Can Import