Considering that the U.S.places a quota on imports of steel from South Korea,which of the following would NOT likely occur?
A) The price of steel in the United States would increase.
B) The quantity of steel produced in the United States would increase or stay the same.
C) The demand for steel in the United States will increase.
D) The quantity demanded for steel in the United States will decrease.

Question

Quizplus · Accepted Answer

Quotas limit the quantity of a good that can be imported into a country, which can lead to higher prices due to reduced supply. This does not directly increase demand for steel in the United States; rather, it affects supply and prices. Demand is influenced by other factors such as the needs of consumers and businesses, not by the imposition of quotas.

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