Imposing a restrictive quota on the import of spiked track shoes will likely
A)increase the price of the shoes but decrease the quantity consumed.
B)increase both the price of the shoes and the quantity consumed.
C)leave the price of the shoes unchanged but decrease the quantity consumed.
D)leave the price of the shoes unchanged and also leave the quantity consumed unchanged.

Question

Quizplus · Accepted Answer

A restrictive quota limits the supply of imported spiked track shoes, leading to higher prices due to scarcity, while the quantity consumed decreases as fewer shoes are available.

Imposing a Restrictive Quota on the Import of Spiked Track