The demand for cars in a certain country is given by: D = 20,000 - P, where P is the price of a car. Supply by domestic car producers is: S = 5,000 + 0.5P. If this economy opens to trade while the world price of a car is $6,000, and the government imposes a quota allowing 3,000 cars to be imported, then the winners are ________.
A) domestic consumers
B) domestic consumers and import permit holders
C) domestic producers and the government
D) domestic producers and import permit holders
Correct Answer:
Verified
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