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24-02-2021
Advanced Placement (AP)

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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?

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24-02-2021

Answer:

the economy experiences a loss

Explanation:

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