Which of the following situations will arise in the domestic market following the imposition of an import ban?

Question

Quizplus · Accepted Answer

An import ban reduces the availability of foreign goods, leading to a decrease in imports. To fill the gap left by the absence of these goods, domestic production increases. With less competition from imports, domestic producers can charge higher prices, leading to an increase in prices.

Which of the Following Situations Will Arise in the Domestic