Related to the Economics in Practice on page 664: When a country lifts a quota, imports to that country generally ________ and the price of the affected product in that country generally ________.
A) increase; rises
B) increase; falls
C) decrease; rises
D) decrease; falls

Question

Quizplus · Accepted Answer

When a quota is lifted, it means that the limit on how much of a product can be imported into a particular country is removed. As a result, the supply of the affected product in that country will increase, leading to a decreased price. This increased supply will also lead to an increase in imports, which is why the correct option is B (increase; falls).

Related to the Economics in Practice on Page 664: When