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A-Level Economics · Import quota diagram question

Which distance shows IMPORTS after the quota?

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The diagram

The answer

The distance G F. At Pq domestic firms supply 4 (G) while buyers take 6 (F): the 2-unit gap is the quota itself — down from 6 units of imports under free trade. Imports after the quota are the horizontal gap between Sd and Sd + quota at the ruling price: G to F, 2 units — exactly the cap. Under free trade the gap was A to B, 6 units. George's revenue reading is the same picture sliced differently: domestic producers supply O → Q₁ and again Q₃ → Q₄, with the fixed quota of imports sandwiched in the middle.

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This is one of 6 questions on the import quota diagram — every corner lettered, every wrong answer diagnosed.

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