Figure 5.5 illustrates the television market for Mexico, assumed to be a small country that is unable to affect the world price. is the domestic supply schedule and is the domestic demand schedule. Suppose that Japan can supply televisions to Mexico at a price of $100 per set. Consider Figure 5.5. Suppose that the governments of Mexico and Japan negotiate a voluntary export agreement in which Japanese TV exports to Mexico are limited to 8 units. Under the quota, the price of TVs in Mexico equals $250 while Mexicans produce 10 TVs and purchase 18 TVs.