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 price?

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 price?

Quizplus · Accepted Answer

Without access to Figure 21.3, I cannot directly observe the impact of the import quota on the equilibrium price. However, typically, an import quota reduces the supply of a good, leading to an increase in its price. The correct answer would depend on the specific details provided in the figure, such as the initial equilibrium, the demand and supply curves, and how the quota of 30 gallons affects the market.

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