A quota imposed on imported steel will cause the domestic ________ of steel to increase and the domestic ________ of steel to increase.

Question

Quizplus · Accepted Answer

A quota on imported steel reduces the supply of steel in the domestic market, leading to an increase in the price of steel. As the price increases, domestic producers are incentivized to produce more, leading to an increase in domestic production.

A Quota Imposed on Imported Steel Will Cause the Domestic