Problem
The U.S. domestic demand schedule and domestic supply schedule for oranges was given in Problem 8. Suppose that the world price of oranges is $0.30. The United States introduces an import quota of 3,000 oranges and assigns the quota rents to foreign orange exporters.
a. Draw the domestic demand and supply curves.
b. What will the domestic price of oranges be after introduction of the quota?
c. What is the value of the quota rents that foreign exporters of oranges receive?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.