India has a quota on the importation of pigeon peas. In October of 2020 it was set at 400K metric tons. The quota is to provide price protection for Indian farmers whose marginal cost of growing and harvesting pigeon peas exceeds that of Myanmar and Malaysia, countries that export the legume to India. The quota restricts the supply in India to 400K metric tons of imports and that which is produced domestically. What is the impact of this quota?

Can have 1 or more answers

a) Indian farmers as they no longer face foreign competition.

b) Indian consumers benefit when they buy the imported pigeon peas but not when they by the domestic pigeon peas

c) It depends on the elasticity of supply and the elasticity of demand in India and in world markets

d)Malaysia and Myanmar farmers gain from the higher price on what they can sell in India and lose from the additional amount they will sell on world markets.