If a quota is placed on a good,domestic producers of the good are ________ and domestic consumers of the good are _________.

Question

Quizplus · Accepted Answer

When a quota is placed on a good, it limits the quantity of imports of that good. This increases the price of the good in the domestic market, making domestic producers better off as they can sell their goods at a higher price. However, domestic consumers are worse off as they have to pay a higher price for the good, and they also have a reduced quantity available to them. Therefore, the correct choice is C.

If a Quota Is Placed on a Good,domestic Producers of the Good