XTR

Quotas and Tariffs limiting production - effectively changes the supply curve ? like w/ a price ceiling, limits the available supply remember that price floors don't necessarily limit the supply (especially for stupid companies) ie. number of alcohol licenses, New York taxi medallions ultimately helps the producers sort of like a combination of a price ceiling (limits supply for sure) and price floor (leads to an additional producer surplus for the most part) ? ? consumer surplus loses A+B producer surplus increases by A, decreases by C net change = loss of B+C (deadweight) import restrictions - either w/ tariff (tax) or quota, serves to help domestic market ? w/o quotas, domestic consumers would buy solely/mostly from abroad instead of domestic markets