Which of the following statements is not generally true of a production quota? a. The market will not clear due to the excess supply of that good. b. Consumer surplus increases when compared to the market before the quota. c. Producer surplus may increase or decrease. d. Some of the consumer surplus will be transferred to producers

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Chapter6: Supply, Demand And Government Policies
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Which of the following statements is not generally true of a production quota?

a. The market will not clear due to the excess supply of that good.

b. Consumer surplus increases when compared to the market before the quota.

c. Producer surplus may increase or decrease.

d. Some of the consumer surplus will be transferred to producers 

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