If the demand for a product increases, then a quota will lead to an increase in the price of the product because the amount imported cannot increase.

Name: If the demand for a product increases, then a quota will lead to an increase in the price of the product because the amount imported cannot increase.
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Question

Quizplus · Accepted Answer

A quota limits the quantity of a product that can be imported, so if demand increases and the supply cannot increase due to the quota, prices will rise due to the higher demand and constrained supply.

If the Demand for a Product Increases, Then a Quota