Restrictions on the importation of tomatoes reduce the supply available to the U.S. domestic market. Studies indicate that the demand for tomatoes is elastic. Compared to a free-trade situation, the import restrictions cause

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When import restrictions reduce the supply available to the US domestic market, the demand for tomatoes being elastic, the reduced supply would cause a rise in tomato prices. As the price of tomatoes increase, consumers would be discouraged from buying, leading to a reduction in consumer expenditure on tomatoes. Therefore, the import restrictions would cause higher tomato prices and a reduction in consumer expenditure on tomatoes in the United States.

Restrictions on the Importation of Tomatoes Reduce the Supply Available