What is demand price and supply price at quota limit?

Question

The difference between the demand price and the supply price at the quota limit is:

A) the quota rent.

B) the rent received by landlords who own rent-controlled apartments.

C) the opportunity cost of using of buying a good, subject to an import quota.

D) all of the above.

Answer 1

A) the quota rent.

Answer keys are here: http://www.mtsu.edu/~ras2q/index_files/c...