The equilibrium price under an import quota is below the price that occurs with free trade.

Name: The equilibrium price under an import quota is below the price that occurs with free trade.
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An import quota typically restricts the quantity of goods that can be imported, leading to a decrease in supply compared to a free trade scenario. This restriction often results in a higher equilibrium price than would occur under free trade, where there are no restrictions on imports.

The Equilibrium Price Under an Import Quota Is Below the Price