959EconomicsMedium
To reduce imports, suppose that the government of Norway’s imposes a quota equal to 800 computers, Compared to what occurred under free trade, Norway’s consumers surplus will ________ and its producer surplus will ________ Can you calculate these amounts? Try plotting the information of this table on a sheet of graph paper?
Aincrease, increase
Bdecrease, increase
Cdecrease, decrease
Dincrease, decrease
Correct answer
B. decrease, increase
Explanation
The correct answer is decrease, increase.