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Import Quotas An import quota qˉ on foreign supply S (p) is effective at sufficiently high prices. If pˉ is the price at which S ( pˉ ) = qˉ, then for prices p< pˉ S (p)< qˉand the quota will not affect foreign supply. For prices p≥ pˉ, foreign firms want to supply S (p)≥ qˉbut the quota is effective and foreign supply will be limited to qˉ .That is, aggregate supply is S (p)+S (p) for p< pˉ and qˉ+S (p) for p≥ pˉ . Freebats are produced both inside and outside Freedonia, but consumed only in Freedonia. The market is competitive, with demand D(p) = { 2250−10p for p≤150 0 for p>150 where p is the price per unit. The supply

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