Hi! I need the explanations for the attached Economics question please, thanks!

Hi! I need the explanations for the attached Economics question please, thanks!

admin / August 17, 2018

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Objective – Quantify Quota Impact The following diagram depicts a market in a small economy. You do not have to provide the graph with your answer….

Hi! I need the explanations for the attached Economics question please, thanks!

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3. Objective – Quantify Quota Impact
The following diagram depicts a market in a small economy. You do not have to
provide the graph with your answer. You can scan and include it if you wish.
Under free trade:
Domestic quantity supplied is ______________.
Domestic quantity demanded is ____________________.
Imports total __________________.
Suppose policymakers impose a quota of 200 units:
The new domestic price is ___________.
Domestic quantity supplied is ______________.
Domestic quantity demanded is ____________________.
The change in consumer surplus is ___________________.
The change in producer surplus is _________________.
Suppose policymakers auction the quota to domestic firms.
The net welfare effect of the quota is a (loss or gain) _______________ of
_______________.

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