Equilibrium with a Supply Quota (+)

Graphs of the market and surpluses

The overall graph of the market looks like this:

To see where the changes in CS and the domestic and foreign PS are, it's easier to look at the individual diagrams for consumers and both types of producer.  Relative to no quota, consumers lose A+B of CS:

Relative to no quota, domestic producers gain PS equal to C:

Again, relative to no quota foreign producers gain PS equal to D:

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Peter J Wilcoxen, The Maxwell School, Syracuse University
Revised 10/07/2014