The Canadian domestic demand schedule and domestic supply schedule for apples was given in Problem 8. Suppose that the world price of apples is $0.30. Canada introduces an import quota of 3000 apples and assigns the quota rents to foreign apple exporters.

a. Draw the domestic demand and supply curves.

b. What will the domestic price of apples be after introduction of the quota?

c. Illustrate the area representing the quota rent on your graph. What is the value of the quota rents that foreign exporters of apples receive?