mnieman

Remember demand curve is the Marginal Benifit curve
Supply curve is the Marginal Cost curve....

Now,
Assume tht demand and supply are in equilibriuim....
Equilibrium qty demanded = 300 kgs of rice
Equilibrium price = $10

Suppose the govt imposes the a quota on rice farmers that only 250 Kgs (250<300) of rice can be produced....(instead of the 300 Kgs that is DEMANDED and SUPPLIED in the market)

So the supply curve will shift upwards and will intersect the demand curve at a price greater then the equilibrium price of 10$ i.e. say $12....so this means that the rice will go to that ppl who value it the most ....there will be an underproduction of rice in the market and will result in a dead weight loss....

Hence the Marginal Benifit will greater than the Maginal Cost..!!...


Hope this Helps!!