If Canada was to levy a quota on chocolate imported from Denmark

Question

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If Canada were to levy a quota on chocolate imported from Denmark, it would limit the amount of chocolate that could be imported into Canada from Denmark. This reduction in competition would lead to an increase in the price of chocolate in Canada, resulting in a decline in consumer surplus. There is no reason to believe that Canada's exports of chocolate would be affected, or that the employment of workers in Denmark's chocolate industry would increase.

If Canada Was to Levy a Quota on Chocolate Imported