Use the following to answer questions:
Figure: The Shrimp Market
-(Figure: The Shrimp Market)Use Figure: The Shrimp Market.If the government imposes a quota limiting sales of shrimp to 500 kilograms,the quota rent per kilogram is:
A) $15.
B) $10.
C) $5.
D) The quota rent cannot be determined from the information provided.

Question

Use the following to answer questions:
Figure: The Shrimp Market 
-(Figure: The Shrimp Market)Use Figure: The Shrimp Market.If the government imposes a quota limiting sales of shrimp to 500 kilograms,the quota rent per kilogram is:
A) $15. 
B) $10. 
C) $5. 
D) The quota rent cannot be determined from the information provided.

Quizplus · Accepted Answer

The quota rent is the difference between the price consumers are willing to pay and the price producers receive. If the quota limits sales to 500 kilograms, the quota rent is $5 per kilogram, as it is the difference between the demand price and the supply price at that quantity.

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