The nation of Acirema is “small” and unable to affect world prices. It imports peanuts at the price of $10 per bag. The demand curve is                                 The supply curve is...

The nation of Acirema is “small” and unable to affect world prices. It imports peanuts at the price of $10 per bag. The demand curve is

The supply curve is

Determine the free trade equilibrium. Then calculate and graph the following effects of an import quota that limits imports to 50 bags.

a. The increase in the domestic price.

b. The quota rents.

c. The consumption distortion loss.

d. The production distortion loss.