A quota will reduce consumer welfare when
A) the quota is less than the amount purchased without the quota.
B) the quota is greater than the amount purchased without the quota.
C) the quota is on a good with high income elasticity.
D) Quotas always reduce consumer welfare.
A
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Which of the following is true about the market supply for resources?
a. The market supply curve of a resource reflects the maximum willingness-to-pay for all firms purchasing resources in the resource market. b. The market supply curve of a resource is derived from the value of the final goods and services produced with the resource. c. The market supply curve of a resource slopes upward because higher resource prices draw resources from lower-valued uses, and because suppliers are able to supply more of the resource at a higher price. d. The market supply curve of a resource slopes downward because suppliers are able to supply less of the resource at a higher price.