Although there are clear benefits to free trade governments

Last updated: 12/4/2023

Although there are clear benefits to free trade governments impose quotas to pre quantity of products that can be imported into a country The figure below illustrates the effects of a quota placed on shoes Without trade the equilibrium domestic price of a pair of shoes is 140 With free trade the domestic price of a pair of shoes falls to the world price of 100 If the government imposes an import quota the domestic price increases to 120 Use the information in the figure to answer the questions that follow 1st attempt Part 1 1 point When there is no quota Part 2 1 point With the quota Part 3 1 point Price Po 140 Pa 120 Pw 100 H C D 350 20 150 B 200 pairs of shoes are imported pairs of shoes are imported Soomestic only 400 Domestic S Stree trade Quantity shoes See Hint See Hint See Hint