The graph to the right shows the supply and demand for imported textiles in the United States. Currently, the price per yard of textiles is $4.50, and the quantity imported is 4,500 yards. Suppose that the U.S. government imposes a quota on imported textiles and restricts the quantity imported to 3,000 yards. 1.) Using the line drawing tool, show the change in the supply curve. Label the curve 'S quota! 2.) Using the point drawing tool, identify the new equilibrium price and quantity. Label it 'E₂'. Carefully follow the instructions above, and only draw the required objects. As a result of the quota, the price of imported textiles to $ per yard. 10- 94 9⁰0 8- N 7-4 Price per Yard ($) ↑ to MA 14.5 3- 2- 14 0+ D 1 2 3 4 6 7 8 9 10 Quantity of Textiles Imported (thousands of yards) (0,0) 0 S 1.5

The graph to the right shows the supply and demand for imported textiles in the United States. Currently, the price per yard of textiles is $4.50, and the quantity imported is 4,500 yards. Suppose that the U.S. government imposes a quota on imported textiles and restricts the quantity imported to 3,000 yards. 1.) Using the line drawing tool, show the change in the supply curve. Label the curve 'S quota! 2.) Using the point drawing tool, identify the new equilibrium price and quantity. Label it 'E₂'. Carefully follow the instructions above, and only draw the required objects. As a result of the quota, the price of imported textiles to $ per yard. 10- 94 9⁰0 8- N 7-4 Price per Yard ($) ↑ to MA 14.5 3- 2- 14 0+ D 1 2 3 4 6 7 8 9 10 Quantity of Textiles Imported (thousands of yards) (0,0) 0 S 1.5

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter4: Demand, Supply, And Market Equilibrium

Section: Chapter Questions

Problem 25P

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