If the United States imposes a quota on French wines, the result in the short run is likely to be ________ profits for American wine producers and ________ profits for French wine producers.

Question

Quizplus · Accepted Answer

Imposing a quota on French wines would limit the amount of imported wine, increasing demand for American wines and potentially leading to higher profits for American wine producers. At the same time, the French wine producers would face reduced access to the US market and lower profits as a result.

If the United States Imposes a Quota on French Wines