b. The quota rents are ($20 - $10) x 50 = $500.
c. The consumption distortion loss is .5 x 100 bags x $10 per bag = $500.
d. The production distortion loss is .5 x 50 bags x $10 per bag = $250.
b. The quota rents are ($20 - $10) x 50 = $500.
c. The consumption distortion loss is .5 x 100 bags x $10 per bag = $500.
d. The production distortion loss is .5 x 50 bags x $10 per bag = $250.
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