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What Will Likely Be the Effect of an Import Quota

Question 69

Multiple Choice

What will likely be the effect of an import quota or tariff on French wine that raises wine prices?


A) It will hurt both domestic wine drinkers and domestic wine producers because of a reduction in competition.
B) It will hurt both domestic wine drinkers and domestic wineries, but this will be more than offset by a reduction in driving fatalities.
C) It will hurt domestic wine drinkers but help domestic wineries, which will gain from the higher prices.
D) It will hurt domestic wineries, which will lose business as a result of the higher prices.

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