Effect of change from world supply
{"Image DocumentName": "Effect of change from world supply", "Image ImageDescription": "Small home country. World price is 1, impose tariff t=0.5, it is the same as to impose quota 40. However, when foreign export supply increases, the foreign supply curve shifts right. The new world price is 0.5, domestic price is 1 given tariff is 0.5, then the deadweight loss is k. However, if quota is still fixed at 40, then the deadweight loss is i+j+k. Quota rent increases from (1.5-1) 40 to ( ) 40.", "Image XResolution": "37", "Image YResolution": "37", "Image ResolutionUnit": "Pixels/Centimeter", "Image Software": "SlidePlayer", "Image YCbCrPositioning": "Centered"}