Social Studies, 12.03.2021 23:50 Officialavm
Assume all costs and benefits are reflected in the supply and demand curves in a market, and neither curve is
perfectly elastic or inelastic.
What happens when a quota is placed on a market in an importing country?
Choose 1 answer
A.
Consumer surplus and producer surplus both increase and deadweight loss is eliminated.
B.
Consumer surplus decreases, producer surplus increases, and total surplus decreases.
C.
Consumer surplus increases, producer surplus increases, and deadweight loss exists.
D.
Consumer surplus increases, producer surplus increases, deadweight loss exists, and tax revenue is
generated.
E. Consumer surplus and producer surplus both decrease and deadweight loss it eliminated
Answers: 2
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