An import quota will
A) lead to a shift of the demand curve.
B) leave the equilibrium price unchanged and increase the quantity sold.
C) limit the amount of a foreign good that can be brought into the United States.
D) limit the amount of a good local producers can make.

Question

Quizplus · Accepted Answer

An import quota is a government-imposed restriction on the amount of a foreign good that can be brought into a country. Therefore, it limits the quantity of imports and aims to protect domestic industries from foreign competition.

An Import Quota Will