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Figure: The Shrimp Market
-(Figure: The Shrimp Market)Use Figure: The Shrimp Market.If the government imposes a quota limiting sales of shrimp to 250 kilograms,it will have the same effect on transactions as a price floor of:
A) $17.50.
B) $10.
C) $7.50.
D) The answer 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 250 kilograms,it will have the same effect on transactions as a price floor of:
A) $17.50. 
B) $10. 
C) $7.50. 
D) The answer cannot be determined from the information provided.

Quizplus · Accepted Answer

A quota limiting sales to 250 kilograms would create a situation where the quantity supplied is less than the equilibrium quantity, similar to a price floor that raises the price to $17.50, where the quantity demanded equals 250 kilograms.

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