Question

One study7 estimated cost of the quotas at $160000 per job saved. In view of this, why do you think the quotas were implemented?​

Answer 1

Answer:

1.This leads to a fall in imports to just Q3-Q2

2.Domestic suppliers gain more revenue. The price rises to P quota and domestic suppliers, supply more Q1 to Q2. It can create domestic jobs.

3.Consumers pay a higher price and also total quantity falls from Q4 to Q3.

4.Governments are not affected directly, as there is no income.