The imposition of a quota on an imported good

Question

Quizplus · Accepted Answer

Imposing a quota on an imported good limits the quantity of the good that can be imported, effectively reducing the supply of the good in the market. This is represented by a leftward shift of the supply curve, which can be interpreted as the supply curve moving up when considering a graph where price is on the vertical axis and quantity on the horizontal axis. It does not directly affect the demand curve for the good.

The Imposition of a Quota on an Imported Good