Graph 9-15 -Using Graph 9-15, Assume That the Government Imposes an Import

Graph 9-15

-Using Graph 9-15, assume that the government imposes an import quota of 20 hammers. Answer the following questions, given this information.
a. What is the equilibrium price and quantity of hammers after the quota is imposed?
b. What is the quantity of hammers imported before the quota?
c. What is the quantity of hammers imported after the quota?
d. What is the amount of consumer surplus before the quota?
e. What is the amount of consumer surplus after the quota?
f. What is the amount of producer surplus before the quota?
g. What is the amount of producer surplus after the quota?
h. What would be the amount of deadweight loss due to the quota?

Correct Answer:

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a. $7, 70
b. 66
c. 2...

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