Import quotas _______ the price of imported goods and _______ the quantity consumed in the country imposing the quota.

Question

Quizplus · Accepted Answer

Import quotas restrict the quantity of imported goods, which can lead to a decrease in supply and an increase in price. This in turn leads to a decrease in the quantity consumed in the country imposing the quota. Therefore, import quotas raise the price of imported goods and decrease the quantity consumed.

Import Quotas _______ the Price of Imported Goods and _______

Import Quotas _ the Price of Imported Goods and _