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Fact 31.3.2
With free trade between Australia and Canada, Australia would export beef to Canada. But Canada imposes an import quota on Australian beef.
-Refer to Fact 31.3.2. If Canada imposes an import quota on Australian beef, the price that Canadian consumers pay for beef will ________ and the quantity of beef produced in Canada will ________.
A)not change; decrease
B)not change; increase
C)rise; not change
D)rise; increase
E)fall; decrease

Question

Quizplus · Accepted Answer

An import quota restricts the supply of Australian beef in Canada, leading to higher prices for consumers and encouraging increased domestic production in Canada.

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