One Impact of an Import Quota Is To

question 75

Multiple Choice

One impact of an import quota is to:

• A) increase both domestic production and domestic prices.
• B) increase domestic production and reduce domestic prices.
• C) reduce domestic production and increase domestic prices.
• D) reduce both domestic production and domestic prices.

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Definitions:

Income Effect

The change in an individual's or economy's income and how that change will affect the quantity demanded of a good or service.

Maintenance

The routine process of keeping equipment, systems, or infrastructure in working order and preventing its deterioration.

Older-Model Computers

Computers from previous generations that may not have the latest technology or features but are still functional for certain tasks or uses.

Brand-Loyal

A consumer behavior characterized by consistent preference and purchase of a particular brand over others.