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Could you explain to me?? Figure 9.2: The. Market for Mopeds in a Large Country (a) The national market for Mopeds Sa Price Sa +

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Figure 9.2: The. Market for Mopeds in a Large Country (a) The national market for Mopeds Sa Price Sa + QQ Quota QQ $800 Domestic price with quota 750 $75h World price $719 New export price with quota Da 0.4 0.5 0.6 1.5 18 2.0 Quantity (b) The market for moped imports 1.8 (Millions of Mopeds per year) Sy Price Quota $800 $750 $715 Dy = Da - Sa 0.9 1.3 QuantitymVu " 1441'. \\a 27. Referring to Figure 9.2, if the government allocated import licenses using a competitive auction, the government will gain how much in license revenue? a. $31.5 million. b. $45 million. c. $76.5 million. (I. $720 million. ANSWER: C 28. Referring to Figure 9.2, the illustrated quota on imported mopeds will cause the importing nation to: a. Lose $10 million. b. Lose $29.75 million. c. Gain $31.5 million. (I. Gain $21.5 million. ANSWER: D 29. Referring to Figure 9.2, the illustrated quota on imported mopeds will cause the world to lose: a. $7 million. b. $10 million. c. $17 million. (I. $31.5 million. ANSWER: A

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