Question: Suppose once again that we are in the same small, nowopen, economy with: p=5+Ql p=802Q And a world price still equal to pw = $14.

Suppose once again that we are in the same small, nowopen, economy with: p=5+Ql p=802Q" And a world price still equal to pw = $14. Suppose now instead that the government is moved to intervene, but instead of a tariff, the government imposes an import quota of 6 units. 1. What becomes the new domestic price faced by domestic consumers? 2. What Deadweight Loss will this quota generate relative to the free trade example from Question 1

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