Import quotas_________ the price of imported goods and_________ the quantity consumed in the nation imposing the quota.

Question

Quizplus · Accepted Answer

Import quotas raise the price of imported goods because they limit the quantity of goods that can enter the domestic market. This scarcity drives up the price. Furthermore, the quantity of imported goods consumed in the nation imposing the quota decreases because there is less of it available due to the imposed quota.

Import Quotas_________ the Price of Imported Goods And_________ the Quantity

Import Quotas_ the Price of Imported Goods And_ the Quantity