Suppose the United States imposes trade sanctions (export quotas) on grain sold to the Russians.Assuming other nations do NOT increase grain exports to the Russians, all of the following would occur EXCEPT

Question

Quizplus · Accepted Answer

The imposition of trade sanctions on grain sold to the Russians would lead to a decrease in the supply of grain available to the Russians, which would result in higher grain prices in Russia and a decrease in consumer surplus for the Russians. U.S. producers who rely on exports to Russia would experience a decrease in export revenues. However, it is unlikely that grain prices would rise in the United States, as the imposition of trade sanctions would only affect exports to Russia and not domestic production and consumption. Other nations may increase their grain exports to Russia to fill the gap left by the U.S. exports, but this is not specified in the question. Therefore, choice C is the correct answer.

Suppose the United States Imposes Trade Sanctions (Export Quotas) on Grain