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2. Figure 1 below shows the market for wireless headphones in a small importer of wireless headphones. D6 and Sd are the domestic demand and

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2. Figure 1 below shows the market for wireless headphones in a small importer of wireless headphones. D6 and Sd are the domestic demand and domestic supply curves of wireless headphones before the imposition of the quota. (Sd+QQ) is the total available domestic supply curve after the quota has been imposed. The quota is binding. Figure 1 a. What is the size of the quota? (7 points) b. How much do the domestic producers of wireless headphones gain or lose from the quota? (7) points) c. How much do the domestic consumers of wireless headphones gain or lose from the quota? (7) points) d. What is the disputed surplus generated by the quota? (7 points)

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