Asked by
travis mason
on Oct 26, 2024Verified
The difference between the demand price and the supply price at the quota limit is:
A) the quota rent.
B) the rent received by landlords who own rent-controlled apartments.
C) the opportunity cost of using or buying a good,subject to an import quota.
D) usually large enough to cause a surplus.
Quota Rent
Quota Rent is the economic rent a producer earns from the difference between the domestic price and the world price due to a quota system limiting imports.
Demand Price
The highest price a consumer is willing to pay for a good or service.
Supply Price
The minimum price at which a seller is willing to sell a good or service, influenced by production costs and market conditions.
- Acquire knowledge on the notion and impacts of quota limitations within markets.
- Ascertain the role and mathematical determination of quota rent within quota-regulated markets.
Verified Answer
AH
Learning Objectives
- Acquire knowledge on the notion and impacts of quota limitations within markets.
- Ascertain the role and mathematical determination of quota rent within quota-regulated markets.