Suppose the United States imposes trade sanctions (export quotas) on grain sold to the Russians.Assuming other nations do not increase grain exports to the Russians,all of the following would occur except:

Question

Quizplus · Accepted Answer

If the United States imposes trade sanctions on grain sold to the Russians, it would lead to a decrease in export revenues for U.S. producers, and grain prices would rise in Russia due to the reduced supply. Consumer surplus for the Russians would decrease since they would have to pay higher prices for the same amount of grain. However, it is not necessarily true that grain prices would rise in the United States, as domestic supply would remain the same, and the export quota may not affect domestic prices.

Suppose the United States Imposes Trade Sanctions (Export Quotas) on Grain