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Question: Draw a graph to illustrate the gains and losses from the import quota. On the graph identify the gains and losses, the importers' profit, and the deadweight loss.
Problem 1
Wholesalers buy and sell roses in containers that hold 120 stems. The table provides information about the wholesale market for roses in North America. The demand schedule is the wholesalers' demand and the supply schedule is the North American rose growers' supply
Wholesalers can buy roses at auction in Aalsmeer, Holland, for $125 per container.
a. With no international trade, what would be the price of a container of roses and how many containers of roses a year would be bought and sold in North America?
b. At the price in your answer to part (a), does North America or the rest of the world have a comparative advantage in producing roses?
The windfall price increase of an imported good that results hen a quota is imposed on that good accrues to
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