Figure 9-3 Since 1953 the United States has imposed a quota to limit the imports of peanuts. Figure 9-3 illustrates the impact of the quota.
-Refer to Figure 9-3. Without the quota, the domestic price of peanuts equals the world price which is $2.00 per pound. What is the quantity of peanuts demanded by domestic consumers in the absence of a quota?

Question

Figure 9-3  Since 1953 the United States has imposed a quota to limit the imports of peanuts. Figure 9-3 illustrates the impact of the quota.
-Refer to Figure 9-3. Without the quota, the domestic price of peanuts equals the world price which is $2.00 per pound. What is the quantity of peanuts demanded by domestic consumers in the absence of a quota?

Quizplus · Accepted Answer

In the absence of a quota, the domestic price aligns with the world price of $2.00 per pound, leading to a higher quantity demanded by consumers, which is 40 million pounds.

Figure 9-3 Since 1953 the United States Has Imposed