3. With an import quota, the price of tomatoes in the United States would rise and the...

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3. With an import quota, the price of tomatoes in the United States would rise and the quantity bought would decrease. Consumer surplus would decrease. Growers would receive a higher price, produce a larger quantity, and producer surplus would increase. The U.S. total surplus in the tomato market would be redistributed from consumers to producers, but it would decrease.

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Foundations Of Microeconomics

ISBN: 9780134491981

8th Edition

Authors: Robin Bade, Michael Parkin

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