To calculate the quota rent across all the German piano imports, the economist would multiply the economic rent of $3,000 by the new import numbers after the quota takes effect -- 30,000 in this case.

To calculate quota rent, first calculate the economic rent, which is the positive difference between the domestic price of the good and the free market price from around the world.

Commodity prices are set by the balance of supply and demand dynamics. Market fluctuations in commodities influence both short-term prices and long-term productions. Price surges trigger increased ...