The following figure shows the domestic demand (Dd) and domestic supply (Sd) curves of mopeds in a country before an import quota is imposed by the government. After the imposition of the quota, the maximum import quantity is QQ.
After the quota is imposed, the domestic consumers
A. lose $22.5 million.
B. gain $52.5 million.
C. lose $82.5 million.
D. lose $7.5 million.
Answer: C
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What will be an ideal response?