The following diagram is for the cotton market in a small country. Under free trade, the...

 

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The following diagram is for the cotton market in a small country. Under free trade, the world price of cotton is $30 per pound. After the small country imposes import quota, the domestic price of cotton reaches $32 per pound in the small country. Price $32 $30 B 100 200 Select one: 400 a. $400,000 b. $300,000 c. $100,000 d, $200,000 600 Supply Demand Refer to the figure above. If the government was to auction the quota license competitively, the government could earn the quota rent of Quantity (thousands) The following diagram is for the cotton market in a small country. Under free trade, the world price of cotton is $30 per pound. After the small country imposes import quota, the domestic price of cotton reaches $32 per pound in the small country. Price $32 $30 B 100 200 Select one: 400 a. $400,000 b. $300,000 c. $100,000 d, $200,000 600 Supply Demand Refer to the figure above. If the government was to auction the quota license competitively, the government could earn the quota rent of Quantity (thousands)

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