Asked by
Mekinah Brionne
on Nov 17, 2024
Verified
When a country that imports a particular good imposes an import quota on that good,
A) consumer surplus increases and total surplus increases in the market for that good.
B) domestic sellers and domestic buyers become worse off.
C) the domestic quantity supplied decreases.
D) consumer surplus decreases and total surplus decreases in the market for that good.
Import Quota
A government-imposed restriction on the quantity of a specific good that can be imported into a country.
Consumer Surplus
The difference between the total amount that consumers are willing to pay for a good or service and the total amount they actually pay.
Total Surplus
The combined total of producer surplus and consumer surplus, indicating the overall societal benefits derived from the consumption and production of a service or product.
- Acquire insights into the consequences of implementing tariffs and import quotas within domestic markets, emphasizing changes in consumer surplus, producer surplus, and cumulative surplus.
Verified Answer
RK
Learning Objectives
- Acquire insights into the consequences of implementing tariffs and import quotas within domestic markets, emphasizing changes in consumer surplus, producer surplus, and cumulative surplus.