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Economics - quotas - mistake in my textbook?

 
 
Zar11
 
Reply Thu 16 Jul, 2015 03:01 pm
I'm learning about quotas from my textbook but I've found one thing that doesn't make sense to me at all and I think it may be a mistake in the book. The accompanying text to the graph below says:

Domestic producers now supply 0Q1 and Q3Q4 tons of wheat at a price of Pquota. Their revenue rises from a to a+c+d+f+i+j.

What I can't understand is why they included f in the last sentence. In my opinion their revenue rises from a to a+c+d+i+j. Domestic producers first sell 0Q1 quantity for price Pw so they make profit of a and then they sell quantity Q3Q4 for price Pquota which gives area of the rectangle: c+i+j+d. I have no idea what that f is doing there. Can anyone explain?

Here's the image of the graph:
http://i.stack.imgur.com/BsMwE.png
Here's the same question on StackExchange if you prefer math font: http://economics.stackexchange.com/questions/6575/quotas-mistake-in-my-textbook
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chai2
 
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Reply Thu 16 Jul, 2015 03:52 pm
@Zar11,
What did your teacher say when you asked him/her about it?
Zar11
 
  0  
Reply Fri 17 Jul, 2015 01:30 am
@chai2,
Nothing because I have summer holidays now. Wink
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