ub Lt score 0 of 1 pt y Courses Concept Question 51 160f 18

ub Lt score: 0 of 1 pt y Courses Concept Question 5.1 160f 18 (8 complete) ? Hw Score: 36.11%, 6.5 of 18pts Queation Help urse Hon Suppose the market supply curve with no quota is ONo Quota-20+0.50p WS and the market supply with a quota is ignmen QQuota 0.5+ 0.25p yPlan At what price and output leval does the quota become binding? Prico (entor your responso as a wholo numbor ults rson eT ment media ter Re munic Enter your answer in the answer box and then click Check Answer.

Solution

A quota is binding when market supply with quota equals the market supply without quota.

- 20 + 0.5p = 0.5 + 0.25p

0.25p = 20.5

p = $82