If an import quota is imposed on imports of shrimp into the United States,U.S.consumer surplus from shrimp will ________ and U.S.total surplus from shrimp will ________.
A) increase; increase
B) increase; decrease
C) decrease; increase
D) decrease; decrease
E) increase; not change

Question

Quizplus · Accepted Answer

Imposing an import quota on shrimp will decrease U.S. consumer surplus because consumers will face higher prices and have less choice. Total surplus will also decrease due to inefficiencies introduced by the quota, such as reduced market efficiency and potential for increased costs.

If an Import Quota Is Imposed on Imports of Shrimp