The Effects of an Import Quota under Competitive Conditions
(Figure 9.2)

Now, we turn our attention to panel B. We can show the quota in the market for U.S. bicycle imports by drawing a vertical line at the level of imports imposed by the quota. The domestic price with the quota is found where the Quota line crosses the demand for imports curve (Dm). Click the show quota button below to show this change in panel B above. Click continue when you are ready to move on to the next page.