Quotas and surplus

Description of how quotas operate in a competitive market and the effects on consumer surplus, producer surplus and social surplus using supply and demand diagrams.

Category:

Education

Tags:

• Microeconomics
• Economics
• Quota
• Quotas
• Price controls
• Supply
• Demand
• Price
• Equilibrium price
• Market price
• consumer surplus
• producer surplus
• social surplus
• surplus

[hashthedealer]

Thank you so much for this. Actually one of my students was a bit confused as to why a quota does not affect when it is at a quantity ABOVE the equilbrium. So I used this analogy: Imagine the market equilbrium is like the speed limit. The cops say drive at 50 km/hr, which u are happy with. Now if the limit (quota) is dropped to 30 km/hr, that will affect you. But if the speed limit (quota) is raised to 100 km/hr, well that doesn't matter because you only wanted to drive at 50 km/hr anyway.

[albedran2]

wow wonderful explanation. Thanks so much... Everyone else had such a complicated explanation.

[Hectikmania]

This was really helpful, THANKS!

[MsSharkeyes]

Thank you so much



[MsSharkeyes]

Thank you so much you saved me

[MsSharkeyes]

Thank you so much you saved my ass

[lbc723]

thanks man

[monicapink94]

Thanks so much(:

This really helped!

[monicapink94]

Thanks so much(:

This really helps!



[MtBrendor]

Great explanation, really helped on my assignment. Thanks!