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

With an import quota of 30 gallons, the new equilibrium quantity demanded is the sum of the domestic production plus the quota amount. If the domestic production is not specified, it's assumed that the quota limits the total imports to 30 gallons, and if the market demand is higher (e.g., 50 gallons including domestic production and imports), then the new equilibrium quantity demanded would be 50 gallons, assuming this number aligns with the total market demand including both domestic and imported goods.

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