An effective quota reduces the quantity supplied and raises the price to consumers.

Name: An effective quota reduces the quantity supplied and raises the price to consumers.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

An effective quota limits the quantity of goods that can be imported, thereby reducing the quantity supplied in the domestic market. With reduced supply, the price of the goods increases, benefiting domestic producers who are protected from foreign competition. Therefore, an effective quota can raise the price to consumers.

An Effective Quota Reduces the Quantity Supplied and Raises the Price