I am currently going through an introductory course to microeconomics. We are discussing how government interventions result in inefficiencies and dead-weight losses.

One of the questions in concern was when government restricts the amount of imports that importers can do. The problem that I had was that what price will we take for calculating surplus on imported goods, world prices or domestic prevailing prices.

In my opinion as imported goods have restriction the exporters of other countries will be competing with themselves thus their prices will be different from the domestic prevailing prices,


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