Although there are clear benefits to free trade, governments impose quotas to prote quantity of products that can be imported into a country. The figure below illustrates the effects of a quota placed on shoes. Without trade, the equilibrium domestic price of a pair of shoes is $140. With free trade, the domestic price of a pair of shoes falls to the world price of $100. If the government imposes an import quota, the domestic price increases to $120. Use the information in the figure to answer the questions that follow. 1st attempt Price Po=$140 Pa=$120 Pw=$100 A B Sdomestic only 150 200 350 400 Sree trade Domestic Quantity (shoes) b Part 1 (1 point) See Hint When there is no quota, pairs of shoes are imported. Part 2 (1 point) With the quota, pairs of shoes are imported. Part 3 (1 point) See Hint See Hint