If a government imposes a quota on imports of a popular doll, the price of the doll in the country ________ and the quantity purchased in the country ________.

Question

Quizplus · Accepted Answer

When a quota is imposed on imports, the supply of the doll in the country is reduced. As a result, the equilibrium price of the doll increases due to limited supply, and the quantity purchased in the country decreases as consumers switch to substitute products or reduce their overall demand.

If a Government Imposes a Quota on Imports of a Popular