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The host of a podcast says that, since a quota results in a transfer from consumer surplus to producer surplus, if the government auctions off
The host of a podcast says that, since a quota results in a transfer from consumer surplus to producer surplus, if the government auctions off quota rights, there will be no loss of economic surplus. You message the host to say that: Question 10 options: even if the government auctions off quota rights, economic surplus still falls. auctioning the quota rights would increase economic surplus. consumers probably would not oppose the quota if the government uses the auction revenue to fund popular programs. the quota will raise the price above the domestic equilibrium price
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