Economics • International Trade
Import Quota Simulator
Adjust the world price and the size of an import quota to see how a quantitative restriction on trade shifts the domestic price and quantity, and who gains and loses as a result — for Cambridge International AS Economics.
Import Quota Analysis
Quantitative Restrictions & Market Welfare Model
Area A: Producer Surplus Gain
Area B: Production Inefficiency (DWL)
Area C: Quota Rent (Importer Profit)
Area D: Consumption Inefficiency (DWL)
Simulation Controls
ℹ️ Non-binding Quota! The quota allowance is greater than or equal to free trade imports. Market price remains at Pw.
🚫 Trade Embargo (Quota = 0)! Imports are completely prohibited. Market price rises to the local equilibrium ($55).
Stakeholder Welfare Summary
| Stakeholder | Impact | Value |
|---|---|---|
| Consumers | Worse Off | Loss: -0 (A+B+C+D) |
| Domestic Producers | Better Off | Gain: +0 (Area A) |
| Quota License Holders | Quota Rent | Gain: +0 (Area C) |
| Government Revenue | $0 (No Tariff) | $0 (unless licenses auctioned) |
| Net Welfare Loss | Deadweight Loss | -0 (B + D) |
Quantity Analysis
| Domestic Output (Q1 → Q2) | +0.0 units |
| Domestic Demand (Q4 → Q3) | -0.0 units |
| Import Cap (Q3 − Q2) | 0.0 units |