Related to the Economics in Practice on p. 667: When a country imposes 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

Quotas limit the quantity of goods that can be imported, which typically reduces the supply of the imported goods in the domestic market, leading to higher prices for those goods.

Related to the Economics in Practice on P