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Unformatted text preview: growers in this country, long protected from global competition, have had a great run at the expense of just about everyone else – refineries, candy manufacturers, other food companies, individual consumers and farmers in the developing world.” Briefly explain how each group mentioned in this editorial is affected by the sugar quota. Eco 1 Spring 2008 Problem Set 5 4) Refer to the following graph for the domestic market for kumquats. Price Quantity US Demand US Supply A C H D I J K E F B G $1.00 $0.75 4 6 12 13 Suppose an import quota of “6” is imposed. Complete the following table. Without Quota With Quota World price of kumquats US price of kumquats Quantity supplied by US firms Quantity demanded by US consumers Area of Consumer Surplus Area of Producer Surplus Area of Deadweight Loss...
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