Which of the following would result from a quota imposed on the quantity of cars that can be imported into the U.S.?

Question

Quizplus · Accepted Answer

A quota on imported cars restricts the supply available in the U.S., leading to an increase in the equilibrium price. This increase in price will result in consumers paying higher prices, which will decrease consumer surplus. Producer surplus may increase, but the overall effect on total surplus is uncertain and could potentially decrease.

Which of the Following Would Result from a Quota Imposed