1. Quota Limit Analysis:
   • Analyze a quota system implemented on sugar imports to protect domestic producers. Without the quota, the equilibrium price is $1.50 per pound, with a demand and supply of 1,000,000 pounds. The government sets a quota limiting imports to 900,000 pounds.
   • Calculate the new price of sugar if the demand price for 900,000 pounds is $2.00, and the quota rent (the difference between the demand and supply price).
   • Represent the effect of the quota on a graph, showing the original and new equilibrium points, the quota limit, and the area of deadweight loss.

• Need a visual of the graph

Requirements:

• Provide detailed calculations for each part of the assignment.
• Include properly labeled graphs for each scenario.

Conclude each section with a brief explanation of the economic implications, identifying which groups benefit and which are harmed by the government's intervention