How will an export quota imposed by a small exporting
Country affect the world price?
A)It will cause an increase in the world price.
B)It will cause a decrease in the world price.
C)It will not affect the world price.
D)It will first cause an increase, then a decrease the world price.

Question

Quizplus · Accepted Answer

A small exporting country does not have enough market power to influence the world price, so an export quota imposed by it will not affect the world price.

How Will an Export Quota Imposed by a Small Exporting