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A month ago
Draw a graph showing the effect on the market of the imposition of a quantity restriction. Show the effect on consumer and producer surplus.
Textbook 
Survey of Economics: Principles, Applications and Tools
Edition: 6th
Authors:
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A month ago
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As shown in the graph, the market is originally in equilibrium at a price of P1 and a quantity of Q1. The imposition of the quantity restriction at Q2, which is less than Q1, also has the effect of causing the price to rise to P2. The triangle whose sides are the vertical line at Q2, the supply curve, and the demand curve represents the combined loss in consumer and producer surplus that results.
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