Concerning the Restrictive Impact of an Import Quota,assume There Occurs

question 60

Multiple Choice

Concerning the restrictive impact of an import quota,assume there occurs an increase in the domestic demand for the import product.As long as the quota falls short of what would be imported under free market conditions,the economy's adjustment to the increase in demand would take the form of:

• A) A decrease in domestic production of the import good
• B) An increase in the amount of the good being imported
• C) An increase in the domestic price of the import good
• D) A decrease in domestic consumption of the import good

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Definitions:

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