During 2005-2006 Europe imported more than $70 million worth of U.S. long-grain rice. In 2006, the European Union threatened to restrict imports of long-grain rice because traces of genetically modified rice were found mixed in to commercial supplies. What would NOT be an effect in the European rice market if U.S. imports were banned?

Question

Quizplus · Accepted Answer

If U.S. imports were banned, the supply of long-grain rice in Europe would decrease, leading to higher prices and reduced consumption, not an increase in consumption.

During 2005-2006 Europe Imported More Than $70 Million Worth of U.S