If the demand curve for clams is downward sloping and the supply curve is upward sloping,a quota that is set above the equilibrium quantity will have no immediate effect on the market.

Question

Quizplus · Accepted Answer

A quota set above the equilibrium quantity does not restrict the market because it allows for the production and sale of the good at the equilibrium level and beyond, hence it does not immediately affect price or quantity sold in the market.

If the Demand Curve for Clams Is Downward Sloping and the Supply