If a government imposes a quota on imports of a popular doll, the price of the doll in the country _______ and the quantity purchased in the country _______.

Question

Quizplus · Accepted Answer

When a quota is imposed, the amount of imports decreases, causing a reduction in supply. This reduction in supply leads to an increase in the price of the popular doll. As the price of the doll increases, the quantity demanded by the consumers decreases, resulting in a decrease in the quantity purchased in the country. Therefore, the correct answer is option D, as the price of the popular doll in the country would rise and the quantity purchased in the country would decrease.

If a Government Imposes a Quota on Imports of a Popular