Which of the following situations will arise in the domestic market following the removal of an import quota?

Question

Quizplus · Accepted Answer

Removing an import quota means that more foreign goods can enter the domestic market, which will increase imports. This, in turn, will decrease demand for domestic production, causing a decrease in domestic production. The increase in supply of goods from abroad will also lead to a decrease in prices due to increased competition in the domestic market.

Which of the Following Situations Will Arise in the Domestic