nfl wholesale jerseys area E' E'' in Figure 9-7
 

This analysis should seem somewhat familiar. Indeed, if you compare the
analysis of import quotas in Figure 9-7 with the analysis of tariffs in Figure 9-6,cheap san jose sharks jerseys, you
will see that they are essentially identical. Both tariffs and import quotas raise the do-
mestic price of the good,nfl wholesale jerseys, reduce the welfare of domestic consumers, increase the welfare of
domestic producers,chi flat iron discount, and cause deadweight losses. There is only one difference between
these two types of trade restriction: A tariff raises revenue for the government
(area E in Figure 9-6),dior shoes 2011, whereas an import quota creates surplus for license holders
(area E' E'' in Figure 9-7).
Tariffs and import quotas can be made to look even more similar. Suppose that
the government tries to capture the license-holder surplus for itself by charging a
fee for the licenses. A license to sell 1 ton of steel is worth exactly the difference be-
tween the Isolandian price of steel and the world price,beats by dre accessories, and the government can