Other things equal, an export quota agreement to stabilize the price of a good on the World market will be more effective, the __________ the percentage of producer Countries that take part in the agreement and the __________ it is for countries to store (or stockpile) the good.

Question

Quizplus · Accepted Answer

A larger percentage of producer countries taking part in the export quota agreement means that there is a greater reduction in supply on the world market, which can effectively stabilize prices. Additionally, if it is easier for countries to store or stockpile the good, they may be more willing to participate in the agreement and follow through with their export quotas.

Other Things Equal, an Export Quota Agreement to Stabilize the Price