Subsidies, quotas and arguments for protection

What this note covers

1. One market, three policy outcomes
2. Production subsidy: calculate output, imports and budget cost
3. Import quota: find the domestic price and quota rent
4. Arguments for protection need mechanisms and tests
5. Quota and subsidy effects under changing conditions
6. Exam method and final policy judgement

6 sections · 10 key terms & formulas · 6 common mistakes