If Canada imposes an import quota on French wines,the result in the short run is likely to be _____ profits for Canadian wine producers and _____ profits for French wine producers.

Question

Quizplus · Accepted Answer

When Canada imposes an import quota on French wines, there will be a decrease in supply of French wines in the Canadian market. This will lead to an increase in the prices of French wines, creating an opportunity for Canadian wine producers to increase their sales and profits. On the other hand, French wine producers will experience a decrease in demand for their wines, leading to a decrease in their profits. Therefore, the correct answer is C, higher profits for Canadian wine producers and lower profits for French wine producers.

If Canada Imposes an Import Quota on French Wines,the Result