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The following diagram shows the domestic demand and domestic supply in a market. In addition, assume that the world price in this market is $40
The following diagram shows the domestic demand and domestic supply in a market. In addition, assume that the world price in this market is $40 per unit. Price 190 180 Domestic 170 Supply 160 150 140 130 120 110 100 90 80 - 70 60+ 50 40 30 - Domestic Demand 10 200 400 600 800 1000 1200 1400 1600 1800 2000 2200 2400 Quantity Suppose the government imposes a quota of 600. The wealfare loss due to the quota will be O $6,000. O $18,000. O $12,000. O $15,000
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