One fundamental concept in economics is that supply and demand determine price. The greater the amount of supply of a product or service that's available and the less demand there is for it, the lower ...

Sometimes external forces in the economy throw the supply and demand for a product or service out of whack. Trade quotas are a common and powerful example of one such external force. One way ...

Quota rent is the difference between domestic and world prices due to import limits. To find quota rent, multiply the import limit by the price gap per unit. Quota rents increase prices for consumers ...