When demand increases for a good subject to a quota:
A) imports would stay the same but the price would rise.
B) the price would stay the same but imports would increase.
C) the supply curve shifts outward at the world price.
D) the price wouldn't change since imports ensure consumption.
E) All of the above
Correct Answer:
Verified
Q28: Suppose a quota on foreign-produced cars is
Q29: When a quota is imposed:
A) foreign firms
Q30: Like tariffs, quotas generally lead to:
A) an
Q31: If a government auctions its quota:
A) domestic
Q32: To calculate a tariff equivalent for a
Q34: If imports are constrained by a quota
Q35: Which of the following statements is true?
A)
Q36: With a quota, as the domestic demand
Q37: After a quota has been imposed in
Q38: Which of the following statements is false?
A)
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