If a government imposes a quota on imports of a popular toy, the price of the toy in the country will _______ and the quantity purchased in the country will _______.

Question

Quizplus · Accepted Answer

Imposing a quota on imports limits the number of toys that can be brought into the country, which reduces the supply. This leads to higher prices due to scarcity and a decrease in the quantity purchased because of the higher prices and limited availability.

If a Government Imposes a Quota on Imports of a Popular