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If the United States Government Were to Impose a Quota

Question 259

Multiple Choice

If the United States government were to impose a quota on wristwatches imported from Switzerland, then the


A) price of wristwatches in the United States would decrease and total quantity consumed (domestic and imported) would increase.
B) prices of wristwatches in Switzerland would rise, and that's how Switzerland would be hurt by the quota.
C) price of wristwatches in the United States would remain the same, but the quantity would fall as imports fell.
D) total quantity of wristwatches (domestic and imported) purchased would decline as prices rose.

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