During 2005-2006 Europe imported more than $70 million worth of US 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, it is unlikely that there would be an increase in long-grain rice consumption as the supply would decrease. The price of long-grain rice would likely increase due to decreased supply, and the quantity of imports would decrease. It is also unlikely that there would be an increase in European rice production as it may not be feasible to ramp up production quickly to fill the gap left by the banned imports. Therefore, choice C is the correct answer as it does not correspond to a likely effect of a ban on U.S. imports of long-grain rice.

During 2005-2006 Europe Imported More Than $70 Million Worth of US