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Suppose that the United States currently both produces kumquats and imports them. The U.S. government then decides to restrict international trade in kumquats by imposing
Suppose that the United States currently both produces kumquats and imports them. The U.S. government then decides to restrict international trade in kumquats by imposing a quota that allows imports of only six million pounds of kumquats into SU.S the United States each year. The figure shows the results of imposing the quota. Fill in the following table (enter all numeric responses rounded to the nearest penny for prices and as whole numbers for quantities) A Without With Quota Quota Price ($ per lb.) World price of kumquats G D E F U.S. price of kumquats 1 50- Quantity supplied by U.S. firms million million H K Quantity demanded million million Du.S. Quantity imported million million Area of consumer surplus 15 16 Q (millions of lbs.) Area of domestic producer surplus Area of deadweight loss
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