Figure 19-3 Since 1953 the United States has imposed a quota to limit the imports of peanuts.Figure 19-3 illustrates the impact of the quota.
-Refer to Figure 19-3.If there was no quota,how many pounds of peanuts would domestic consumers purchase and what quantity would be imported?

Question

Figure 19-3  Since 1953 the United States has imposed a quota to limit the imports of peanuts.Figure 19-3 illustrates the impact of the quota.
-Refer to Figure 19-3.If there was no quota,how many pounds of peanuts would domestic consumers purchase and what quantity would be imported?

Quizplus · Accepted Answer

According to Figure 19-3, with no quota, the domestic supply curve would intersect with the domestic demand curve at a price of $0.20 per pound and a quantity of 40 million pounds. At this point, the quantity demanded by domestic consumers would be equal to the quantity supplied by domestic producers, and there would still be a shortage of 30 million pounds. Therefore, the quantity imported would be 30 million pounds.

Figure 19-3 Since 1953 the United States Has Imposed