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Answer to Question #44826 in Economics of Enterprise for Mohseen

Question #44826
5. Suppose that EU imports of a food item from country A are regulated by
means of a quota. Using appropriate diagrammatic analysis explain the
welfare implications to EU from:
(a) an increase in import quota that is decided in an attempt to improve the
political relations with country A and
(b) a decrease in import quota that prohibits completely imports from country A
because of a health disease in this country
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