If the United States imposes an import quota on French wines,the result in the short run is likely to be _____ profits for American wine producers and _____ profits for French wine producers.

Question

Quizplus · Accepted Answer

When the United States imposes an import quota on French wines, the supply of French wines in the United States will decrease, which will shift the demand curve for American wines to the right. This will increase the price and the quantity of American wines sold, resulting in higher profits for American wine producers. On the other hand, French wine producers will experience lower profits due to the decrease in demand for their products. Therefore, the correct answer is C, higher profits for American wine producers and lower profits for French wine producers.

If the United States Imposes an Import Quota on French