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A quota on domestic importers can create an efficiency loss An internationally traded good sells for...

A quota on domestic importers can create an efficiency loss An internationally traded good sells for a world price of 120 dollars. Domestic supply and demand are given by D = 260 – 0.5p and S = 0.5p – 50. Provide a supply and demand diagram to illustrate and quantify the efficiency loss that is caused by a quota of 40 units applied to domestic importers. Shade in the areas representing the efficiency loss in your diagram. With the quota in place this good will sell for a price equal to _______ dollars

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