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3. After the government has increased the quota limit of imported vegetables, the quantity transacted of the vegetables is still lower than the equilibrium quantity
3. After the government has increased the quota limit of imported vegetables, the quantity transacted of the vegetables is still lower than the equilibrium quantity without the quota. Suppose the demand for vegetables is elastic. With the aid of a diagram, explain the effect of the above measure on the price, quantity transacted and the total sales revenue of the vegetables (7 marks)
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