After a quota has been imposed in a market, suppose that the demand for the product increases, this would cause the quota price to _____ and the amount imported to _____ .

Question

Quizplus · Accepted Answer

When a quota is imposed in a market, it limits the quantity of a product that can be imported. If demand for the product increases, the price under the quota would rise due to increased competition for the limited available supply. However, the amount imported would remain the same because the quota, a fixed limit, does not change with demand.

After a Quota Has Been Imposed in a Market, Suppose