How does a quota affect the consumer surplus and the producer surplus from the imported good? Is the overall economy helped or harmed by quotas? Briefly explain your answers

What will be an ideal response?

A quota raises the price of the good so that domestic consumption decreases and domestic production increases. As a result, domestic consumer surplus decreases and domestic producer surplus increases. The overall economy is harmed. The decrease in consumer surplus is larger than the increase in producer surplus so a deadweight loss is created.