An import quota on a product normally does all of the following except
A)reduces the volume of that product traded.
B)raises the price in the importing country.
C)increases the price everywhere.
D)reduces the price in the exporting country.

Question

Quizplus · Accepted Answer

An import quota restricts the quantity of a good that can be imported into a country, which typically raises the price of that good in the importing country due to reduced supply. However, it does not necessarily increase the price everywhere, as prices in other countries or in the exporting country can be affected differently based on their own supply and demand conditions.

An Import Quota on a Product Normally Does All of the Following