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o o . Figure 1 shows domestic supply and demand curves for a market, together with several labeled prices and quantities. If the world price
o o . Figure 1 shows domestic supply and demand curves for a market, together with several labeled prices and quantities. If the world price is $4, and there is no restriction on trade, what is the quantity of imports? Suppose the world price is $2, and there is an import quota of 6, determine the domestic price and the quantity of imports. If the world price is $2, and there is an import quota of 4, what is the quota rent per unit of imports? If the world price is $2, and there is an import quota of 4, what is the total quota rent (on all imports together)? Figure 1
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