Related to the Economics in Practice on page 667: When a country lifts a quota, imports to that country generally ________ and the price of the affected product in that country generally ________.
A) increase; rises
B) increase; falls
C) decrease; rises
D) decrease; falls

Question

Quizplus · Accepted Answer

When a country lifts a quota, it allows more of the affected product to be imported, which generally increases the supply of that product in the country. This increased supply typically leads to a decrease in the price of the product.

Related to the Economics in Practice on Page 667: When