To Calculate Consumer Surplus for the Case When a Quota

question 19

Multiple Choice

To calculate consumer surplus for the case when a quota is in place:

• A) integrate the area under the demand curve and above the free-market equilibrium price.
• B) integrate the area under the demand curve and above the price determined by the market after the quota is in place.
• C) integrate the area above the supply curve and under the price determined by the market after the quota is in place.
• D) integrate the area under the demand curve and above the supply curve between zero and the quota quantity.

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