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# The following graph shows the market for TV sets in Venezuela The grey line illustrates t

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The following graph shows the market for TV sets in Venezuela. The grey line illustrates the world supply curve of TV sets. Suppose that Venezuela imposes a quota that limits imports to 300 TV sets Use the green points (triangle symbol) to plot the quota-adjusted supply curve on the following graph. (Hint: Make sure you use three points to plot the curve, which is parallel to the original supply curve, with the last point indicating the upper limit allowed by the graph.) Then, use the black point (cross symbol) to indicate the new equilibrium point. ? 600 Supply A 550 500 SWith quota 450 400 Ewith quota 350 300 250 200 SNocld 150 100 Demand 50 0 900 1000 0 100 200 300 400 500 600 700 800 QUANTITY (Number of TV sets) PRICE (Dollars per TV set) , and consumer surplus falls by \$ As a result of the quota, price rises by \$ Complete the following table by calculating the sizes of the redistributive, protective, consumption, and revenue effects and the welfare loss to Venezuela as a result of the quota. Effect Size Redistributive effect Protective effect Consumption effect Revenue effect Welfare loss as a result of the quota Suppose that foreign exporters organize as a monopoly seller. The overall welfare loss to Venezuela as a result of the quota would be

Jan 07 2020 View more View Less