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

Question

Quizplus · Accepted Answer

When a quota is imposed on imports, the supply of the popular doll in the importing country decreases, which leads to an increase in price (as the demand for the doll remains constant or even increases). As the price of the doll rises, the quantity demanded decreases, leading to a decrease in the quantity purchased in the importing country. Therefore, the correct answer is B - rises; decreases.

If a Government Imposes a Quota on Imports of a Popular