Figure 6.3 represents the Iraqi computer market.Assume Iraq purchases all of its computers from the United States.
Figure 6.3 Iraqi Computer Market and Economic Sanctions

-Consider Figure 6.3.In response to Iraq's armed invasion of neighboring countries,suppose the United States imposes a partial embargo that limits exports to Iraq to 10 computers.The export quota leads to an increase/decrease in the price of computers equal to $____,and an increase/decrease in consumer surplus equal to $____.

Question

Figure 6.3 represents the Iraqi computer market.Assume Iraq purchases all of its computers from the United States.
Figure 6.3 Iraqi Computer Market and Economic Sanctions
 
-Consider Figure 6.3.In response to Iraq's armed invasion of neighboring countries,suppose the United States imposes a partial embargo that limits exports to Iraq to 10 computers.The export quota leads to an increase/decrease in the price of computers equal to $____,and an increase/decrease in consumer surplus equal to $____.

Quizplus · Accepted Answer

The export quota reduces the supply of computers to Iraq, leading to an increase in the price of computers. The increase in price reduces consumer surplus, as consumers are now paying more for the same good.

Figure 63 Represents the Iraqi Computer Market