How does a quota affect consumer surplus, producer surplus, and total surplus?

marketing

Description

Consumer surplus and producer surplus both are influenced to the greatest extent as the provision of quota. A quota in terms of economical terms is a type of barrier or restriction imposed on the total quantity of goods produced and allowed to enter in any nation.The quota if allowed to accessed then the net effect after the import and export of quantity produced or allowed to any country as quota limit is combination of the overall gain to the actual foreign suppliers instead government has suffered loss as well as consumer surplus and producer surplus in any country who is imported from another nation. How does a quota affect consumer surplus, producer surplus, and total surplus?


Related Questions in marketing category


Disclaimer
The ready solutions purchased from Library are already used solutions. Please do not submit them directly as it may lead to plagiarism. Once paid, the solution file download link will be sent to your provided email. Please either use them for learning purpose or re-write them in your own language. In case if you haven't get the email, do let us know via chat support.