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A small open economy has demand for goat cheese given by P = 20 - 0.50 and supply given by P= Q - 4. Goat
A small open economy has demand for goat cheese given by P = 20 - 0.50 and supply given by P= Q - 4. Goat cheese is traded around the world at a price of $4 per tonne. Suppose that the government imposes a quota of 15 tonnes on goat cheese. How will consumer surplus be affected, relative to the free trade scenario? A. None of the other answers. B. Decreased by $78.00 C. No change D. Decreased by $87.00 E. Increased by $15
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