The diagram below shows the market for litres of milk. FIGURE 5-8
-Refer to Figure 5-8.After the imposition of a milk quota at quantity Q₁,economic surplus is represented by

Question

The diagram below shows the market for litres of milk. FIGURE 5-8 -Refer to Figure 5-8.After the imposition of a milk quota at quantity Q₁,economic surplus is represented by

Quizplus · Accepted Answer

After the imposition of a milk quota at quantity Q1, the economic surplus is represented by the areas under the demand and supply curves up to Q1, which are areas 1, 2, and 3.

The Diagram Below Shows the Market for Litres of Milk