If an import quota is imposed on imports of shrimp into the United States, U.S. producers
And the U.S. economy will _________ .

Question

Quizplus · Accepted Answer

U.S. producers will gain because the quota limits competition from foreign shrimp, allowing them to sell more at higher prices. However, the U.S. economy will lose because consumers face higher prices and less variety, and resources are not allocated efficiently.

If an Import Quota Is Imposed on Imports of Shrimp