In the domestic market following the removal of an import quota,imports ________,domestic production ________,and prices ________.

Question

Quizplus · Accepted Answer

When an import quota is removed, more foreign goods can enter the domestic market, which increases imports. The competition with domestic producers also increases, leading to a decrease in domestic production. Finally, with more supply in the market, prices of goods decrease. Therefore, the correct response is option A.

In the Domestic Market Following the Removal of an Import