If a government imposes a quota on imports of a popular doll, the price of the doll in the country will ________ and the quantity purchased in the country will ________.

Question

Quizplus · Accepted Answer

Imposing a quota on imports limits the number of dolls that can be brought into the country, which reduces supply. With demand remaining constant or increasing, the reduced supply leads to higher prices and a decrease in the quantity purchased due to the higher prices and limited availability.

If a Government Imposes a Quota on Imports of a Popular