If protective import-restricting quota are imposed by a country, in the majority of cases that nation's consumers end up
A) paying a lower price for the good than they otherwise would.
B) consuming more of the good than they otherwise would.
C) having more consumption choices than they otherwise would.
D) consuming less of the good than they otherwise would.

Question

Quizplus · Accepted Answer

When protective import-restricting quotas are imposed, the domestic supply of the product will increase and the price will likely increase as well. This makes the product less affordable and reduces the quantity consumed by domestic consumers. As a result, they would consume less of the good than they otherwise would.

If Protective Import-Restricting Quota Are Imposed by a Country, in the Majority