The diagram shows quota by a small country in perfect competition. On the diagram below, the vertical axis shows price and the horizontal axis shows the quantity of pocket calculators. The domestic demand and domestic supply curves intersect at a point where price is $10 and quantity is 60. When world price (free trade price) is $3, the quantity of domestic supply equals 10 and quantity of domestic demand equals 110. Domestic price under quota equals $6. When price under quota equals $6, the quantity of domestic supply equals 40 and quantity of domestic demand equals 80. The world supply (domestic plus international supply) curve under free trade intersects the domestic demand curve at a point where price is $3 and quantity is 110 and the domestic supply curve at a point where price is $3 and quantity is 10.. The world supply curve under quota intersects the domestic demand curve at a point where price is $6 and quantity is 80 and the domestic supply curve at a point where price is $6 and quantity is 40. 10 world supply under quota 3 world supply D 10 40 60 80 110 Pocket calculators Based on the diagram, the quota rent equals, O 1) $100 O 2) $120 3) $140 ( 4) $160