Related to the Economics in Practice on p. 344: When a country imposes a quota, imports to that country generally ________ and the price of the affected product in that country generally ________.

Question

Quizplus · Accepted Answer

When a quota is imposed, the allowable amount of imports decreases. This leads to a decrease in supply of the affected product in the country, which generally leads to a rise in its price.

Related to the Economics in Practice on P