Suppose that the world price of oranges is $0.30. The United States introduces an import quota of 3,000 oranges and assigns the
quota rents to foreign orange exporters. - Draw the domestic demand and supply curves.
- What will the domestic price of oranges be after introduction of the quota?
- What is the value of the quota rents that foreign exporters of oranges receive?
I honestly have no idea. I find it fascinating how people either come up with this stuff or start a religion/choose to believe in one. I, personally am an atheist and do not believe in "god" or have a religion.
