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Suppose that the government imposes quota of 70% of the current import amount . Do the...

Suppose that the government imposes quota of 70% of the current import amount . Do the following:

a. Plot a graph to show the effects of the quota.

b. Show the new areas of consumer surplus, producer surplus, and any other relevant areas.

c. Show the deadweight losses due to the quota.

d. Who wins and who loses from the quota?

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