An import quota for sugar results in an increase in
A) the domestic market price of sugar.
B) the domestic demand for sugar.
C) the domestic market supply of sugar.
D) sugar imports.

Question

Quizplus · Accepted Answer

An import quota for sugar limits the amount of sugar that can be imported, which reduces the overall supply of sugar in the domestic market. This reduction in supply, with demand remaining constant, leads to an increase in the domestic market price of sugar.

An Import Quota for Sugar Results in an Increase in