The figure below shows the demand (D) and supply (S) curves of corn syrups. Figure 21.3
-In Figure 21.3,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 21.3  
-In Figure 21.3,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 supply and demand. With a quota of 30 gallons, the new equilibrium quantity demanded would adjust to the level where the domestic supply plus the import quota meets the demand, which is 50 gallons.

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