If the demand curve for clams is downward sloping,a quota that is set below the equilibrium quantity will result in a demand price that is lower than the equilibrium price.

Name: If the demand curve for clams is downward sloping,a quota that is set below the equilibrium quantity will result in a demand price that is lower than the equilibrium price.
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Question

Quizplus · Accepted Answer

A quota that is set below the equilibrium quantity will result in a shortage of clams, which will increase the demand price above the equilibrium price.

If the Demand Curve for Clams Is Downward Sloping,a Quota