Quotas and protectionism

[Habibur93Rahman]

Once the quota of 200 is set and quantity demanded and supplied have established, two triangles establish 1. between Q.400 & Q.570 and 2nd triangle Q.770 to q.1000...what is that area called. In a perfect competition/ monopoly when a triangle shape is formed, after adding mc curve, they are labelled as deadweightlloss. And just to note the WTO prefer if any protectionism is needed its in the form of tariffs and not quotas as the former is more transparent than the latter.

[Habibur93Rahman]

First of all thanks phil for making these videos as you have helped thousands of students around the world, its a shame I cant find any half decent videos for A level accounting. Just got a genuine question unlike some dumb questions some idiots have been asking.

[MultiVan1985]

thanks for both of the vids. Nice reasoning for making Sw parallel to Q and not to Sd :)

[MrMushroomKid]

Very good video,very helpful as usual, thank you very much! But you mentioned Average Propensity to Consumer being about 0.9, surely you meant Marginal Propensity to Consume?

[arsenalmanz]

im really surprised by the 50 dislikes

[talliewalliexD]

"If the government does not have revenue in a quota, what is being done with the "excess" money that is usually found in the same place in the graph as in the tariff graph?" I second this question.

[slmnsulaimon]

Thank you for your videos, this is a great help, believe me!

[thelocked16]

in my book there is shift in demand curve "chapter 9 dominick salvatore international economics.. can you tell me please?

[InfernoDragonHeart]

This is sweet! Thank You.

[bolt93]

why is there no shift in the supply curve?

[guitarsforever]

If the government does not have revenue in a quota, what is being done with the "excess" money that is usually found in the same place in the graph as in the tariff graph?

PS: your videos are helping me so much!! Thank you!

[hannansy3d]

I'm currently in Econ and our teacher is showing us your videos! haha this is great!

[BLRLumber]

So Quotas is an artificial way to raise prices. You are talking about import/export quotas but what about the quotas we impose inside our own country, quota on wine production, quota on milk production, quota on grain production...What is the goal? Increase profit to the retailer, and decreasing profit for the producer?

[fagsauce]

Great videos, clear, concise, you're doiung a great service to students everywhere! what university do you teach at? I need to go there!

[dudettemaz]

I genuinely believe you are the smartest man I have ever listened to.

You should run a competition where the winner gets to spend an hour in your presence, just soaking up your knowledge.

And to think that your students already win exactly that several times a week... Lucky buggers!

[akfsjhaks]

Wouldn't the supply curve shift to the right as a result of the price rising?

[maestropiano]

@akfsjhaks No, shifts only occur when anything other than a change in market equilibrium price is changed.

[Adamwallace5]

hi great video and it has helped alot just stuck on one point - why would the price of imports raise when a quota is implemented, wouldn't a quota mean that international economies would be more competitive to export to the economy in hand and therefore price would drive down, i understand in the home economy but not with the economies we are importing from..?

[Greygoose511]

cheers phil, your videos are really helping IB economics, keep them coming!

[pwrsurge21]

@Greygoose511 same here. I just aced my SL paper 1

[dominicanshy]

Can you post videos on farming or create a new profile. Very interested in farming from your perspective.

[louiethegreater]

Yey, the solution is have no manufacturing in a country, allow everything to be imported, and finally the market will disappear, because the people will be so poor they cannot buy anything. Does that sound like what is happening in the U.S.

[cunucky]

@louiethegreater you must have a very simplistic view of the economy my friend. The wealth that is created in our global economy today is not dominated by putting cheap parts together. It is the Ideas of How to put them together, what to make them into and ways to make it more efficient that make rich countries so rich. one study a few years back showed that the value added to an ipod by Chinese manufacturing them was 4 $ of the 150$ it costs them to make it (apple sold it for 300).

[louiethegreater]

@cunucky One only needs a simplistic view of the economy : no need to complicate it. It is as simple as walking through the Walmart, and observing where things are made, if one would happen to realize that none of the products are manufactured on ones own country, than one should realize that their country will have massive unemployment, and that if that trend continues everyone in the country will seek support form government, who will foolishly attempt to provide it. Its as simple as that!

[alih15]

i thought a quota was a limit, not a raising of the price being forced up?

[pajholden]

@alih15 It is a limit, but that in turn forces the price up to a point where domestic demand = domestic supply + quota. Government earns nothing though, unlike in tariff system

[Rozz365]

hi paj, i thinnk your really sexy

[juankda]

As I understand, quota shift the domestic supply curve rightward the amount of the quota. The government in this case don't collect from it. So, there is not areas formed due the constraint you explain.. Am I wrong?

[masterdino123]

do a video on Isoquants!

[haruglory6890]

Is it possible to explain how a quota restrict the level of imports coming into a country on a diagram with a quota level represented by a vertical line on the left side of the equilibrium? If it is, could you make an explanation using such diagram?

I'm taking economics in the IB Diploma programme at a school in Norway, and I'm now covering the chapter on international economics :) I would appreciate your help.

[TheDoloReel]

holden for president

[GarethMuggins]

Not to be arrogant but I think you have got confused here. Your diagram for quotas and tarrifs shouldn't look exactly the same which they do. With quota's when world supply reaches its quota home supply automatically has to kick in, What your saying seems to make perfect sense but all my other research show the home supply curve to moves to the right!!!

[realvideo24]

Good educational videos THANK YOU

[up2trix]

this guy is SICK lol

[Lihborg]

You have seriously saved my future. The subject I didn't understand was economics. I've shown this to all my friends and they agree, you sir are a hero.

[pakmen]

dude i have a major issue with your website

[BNYC87]

I like this guy.

[Mastodonmatt]

Good video, these are very useful for revision, particularly since the textbook I use which was recommended to me is not very clear on some things! Thanks.

[daniyalmushtaq]

Great Work

[memo7carol]

: / my teacher taught me that, a quota was a shift of the S(domestic) to the right.

help.

[Steelyz]

Thank you, this will be useful to me.

[Gdsm9]

This is fantastic. You have a real talent for teaching. Your channel has really helped me quite a bit, thank you.

[iPhoNeNfoRmer]

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[iPhoNeNfoRmer]

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[MrManishthapar]

gr8 video Phil, Thnx a lot very helpful.

[dreamgirl123698741]

hi u explained it very well

but i dont get when u said "when he quota is 0 then no import could be made by the business" i dont get that bit could you pls explain that! why, i mean there should be a limited amount that the business should be allowed till a point or something! pls explain!

[EthanMSomers]

Dr. Holden,

You're the man!

[riazr88]

God bless you sir, you explain economics very well. Your accent rocks!

[Chetonomist]

Great work Mr.Holden you've helped me alot for A-level economics.

However shouldn't a Quota be shown by a verticle supply curve rather than a horizontal one?

The reason being is that if supply with a quota is show vertically it actually shows a direct limit on supply Via a perfectly inelastic supply curve after the quota you wish to set?

[MrPapaayo]

Pls can you explian this to me

"Using economic theory explain why contemporary art price are so high"

[Agent4tap]

Awesome, this really helped me on my GCSE Econ. I would have never understand this in class.

[emilrealmadrid]

My dear friend, where do you teach?

[MetalSupra1982]

he teaches some where in greece

[pajholden]

I teach in Athens, Greece.

[MetalSupra1982]

hehe close,

btw, Greetings form denmark. Your a huge hit in my economics class.

Thanks :D

[daniyalmushtaq]

@pajholden great work

really helping me

[Maxy1896]

@pajholden Are you an IB Teacher?

Great explanations and vids btw!

[VPMusiconline]

You are very clear and concise! If whole topics could be covered as quickly and effeiently as this then the standard of A-level knowledge would be on the whole, a lot higher. Thankyou very much.

[simduffy]

very good! never would have understood that without this! thanks

[hbagdai]

I messed up, this would have helped, damm brian

[jumadi1990]

is this means that the deadweight loss occurs in tariffs and quotas are the same ?

[charr05]

check out "economyincrisis" for some analysis of protectionism in the real world

[yokohgohwei91]

thanks so much!this really helped!

[cwazydrummerkid]

thank god for these videos, i've got my international trade exam in about 7 hours, and these are so much more helpful then what they teach us in class

[manukhan1987]

good but in a pre 1860 usa policy wouldnt matter new modern gold standard markets will solve themselves

[kev3000]

You explain the economic concepts very well... I wish you were my teacher!!!

[Oopstoobad6275]

i have a test on this stuff tomorrow...tariffs, quotas, and its affect on welfare! fun stuff! this was a nice way to review before my test! thanks

[mutanthole]

hey umm i've seen both the quotas and tariffs videos already but the thing now is that i'm confused and can't tell the difference between the two..

[pajholden]

With tariffs, the government sets the tax and lets the market decide the quantity find itself. With quotas, the government sets the quantity permitted and then lets the market find the price. Thanks for watching.

[mutanthole]

ahh ok its clear now :) thanks!

[ganapath2005]

@pajholden In just few words, u said the main underlying difference between quotas and tariffs. Thanks a ton!

[Kr15S]

Excellent last minute revision...my exam is in seven hours and this video has probably already rescued my overall grade from shady to not so bad, cheers Phil.

[jogamatudo]

better than glanville, sloman or samuelson.. thank you very much...

[propthree]

What happens when a monopolist is protected by an import tariff? How does this affect national welfare?

[oniontaker]

how are the quotas enforced? simply 'by raising the price' seems to be a bit difficult - is it a case of the government setting a minimum price for the imported good? could you suggest ways in which price could be raised to P3 as in your diagram?

[pajholden]

Hi, thanks for your comment. The price isn't raised, in the sense that a new higher price is conciously 'set'. The price rises as market forces pull it higher since the quota imposed will limit supply. How rigorously the quotas are enforced depends on the policing of the system by the authorities. In my video, P3 has not been set - it is just the price at which equilibrium is reached following the imposition of the quota. The tighter the quota, the higher the price will go.

[oniontaker]

ah, right on.

thanks v much

very helpful vid :)

[harriijones]

i'm at secondry school at the moment, and when i go to college, i want to take Business studies.

because im interested in owning a business when i'm older.

but all this that your talking about, confuses me, but ohwell maybe i'll learn all this in college :)

[LeeYawn1899]

Thank you very much for the video!

I have my IB exams today and tomorrow and the videos have proven to be great for last minute revision.

More helpful than any book or any teacher I have ever had!