(c) Now, consider Strategy B instead (refer to the image below) where the U.S. introduces an import quota of 3,000 oranges, which raises the domestic price to $0.6. How many more oranges will domestic producers now supply compared to under free trade? What is the new quantity demanded by consumers? Price (P) $0.60 $0.30 Q1 Domestic Supply Domestic Supply 2 QUOTA Free Trade Quantity (Q) Q3 Q4 Q2 Domestic producers will now supply [Select] The quantity demanded is now [Select] Demand (D) thousand more oranges. thousand oranges.

(c) Now, consider Strategy B instead (refer to the image below) where the U.S. introduces an import quota of 3,000 oranges, which raises the domestic price to $0.6. How many more oranges will domestic producers now supply compared to under free trade? What is the new quantity demanded by consumers? Price (P) $0.60 $0.30 Q1 Domestic Supply Domestic Supply 2 QUOTA Free Trade Quantity (Q) Q3 Q4 Q2 Domestic producers will now supply [Select] The quantity demanded is now [Select] Demand (D) thousand more oranges. thousand oranges.

Principles of Economics, 7th Edition (MindTap Course List)

7th Edition

ISBN:9781285165875

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter9: Application: International Trade

Section: Chapter Questions

Problem 8PA

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