what-happens-to-consumer-surplus-when-an-import-quota-is-imposed-and-how-is-this

Question

What happens to consumer surplus when an import quota is imposed, and how is this represented on a supply and demand graph?

Accepted Answer

Consumer surplus decreases, represented by a smaller area under the demand curve.

Answer

Consumer surplus increases, represented by a larger area under the demand curve.

Answer

Consumer surplus decreases, represented by a larger area under the supply curve.

Answer

Consumer surplus remains unchanged, represented by the same area under the demand curve.