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Import Quotas and VERs
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Problem 7
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Problem 10
Import Quotas and VERs
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9. International Trade / Import Quotas and VERs / Problem 7
Problem 7
How does an import quota affect consumer and producer surplus in a domestic market?
A
Both consumer and producer surplus decrease.
B
Both consumer and producer surplus increase.
C
Consumer surplus increases, and producer surplus decreases.
D
Consumer surplus decreases, and producer surplus increases.
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