The domestic demand for almonds is QD = 20,000,000 500,000p. The domestic supply is QS = 2,000,000 + 600,000p, where quantity is in crates per year…

The domestic demand for almonds is QD = 20,000,000 − 500,000p. The domestic supply is QS = −2,000,000 + 600,000p, where quantity is in crates per year and p = price per crate. The world price is $15 per crate. 4.1 Suppose that the country initially has no restrictions on trade and then imposes an import quota of 3,000,000 crates per year. How will this affect the price and the quantity imported? What are the welfare effects?