Consider Figure 5.6. In the global market for wine, the EU is willing to supply as much wine as the U.S. demands at $8 per bottle. If the U.S. imposes a quota of 15 bottles of wine what will happen to consumer surplus?

a. decreases by $210
b. decreases by $245
c. stays the same
d. increases by $70


b. decreases by $245

Business

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What will be an ideal response?

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