Suppose that the country of Pacifica imposes a quota on bananas. The reason that the government imposed this trade restriction could be

Question

Quizplus · Accepted Answer

Quotas are typically imposed for reasons such as protecting domestic industries from foreign competition, which in this case could be to protect Pacifica's banana farmers. This protection could come as a result of lobbying efforts by the domestic farmers to limit the supply of imported bananas, thereby potentially increasing the market for locally grown bananas. Options A and B are not directly related to the imposition of quotas.

Suppose That the Country of Pacifica Imposes a Quota on Bananas