The effect of an import quota is to
A)raise the price and reduce the quantity of imports.
B)raise the price and the quantity of imports.
C)lower the price and the quantity of imports.
D)raise the quantity and reduce the price of imports.

Question

Quizplus · Accepted Answer

An import quota limits the quantity of imports, which can raise the price due to reduced supply. Additionally, limiting the supply can decrease the quantity of imports overall. Therefore, choice A is correct. The other choices are incorrect.

The Effect of an Import Quota Is to