1. 4.3 The park service wants to restrict the number of visitors to Yellowstone National Park to Q*, which is fewer than the current volume. It considers two policies:

(a) raising the price of admissions and (b)

setting a quota. Compare the effects of these two policies on consumer surplus and welfare. Use a graph to show which policy is superior according to the welfare criterion.

5. Policies That Create a Wedge Between Supply and Demand Curves