One impact of an import quota is to:
A) increase both domestic production and domestic prices.
B) increase domestic production and reduce domestic prices.
C) reduce domestic production and increase domestic prices.
D) reduce both domestic production and domestic prices.

Question

Quizplus · Accepted Answer

An import quota limits the quantity of a good that can be imported, leading to higher domestic prices and increased domestic production as domestic producers fill the gap left by restricted imports.

One Impact of an Import Quota Is To