What Is Protectionism and Why Might a Government Adopt It

question 96

Essay

What is protectionism and why might a government adopt it as a policy? Explain how three examples of protectionism function.

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Definitions:

Excess Supply

Occurs when the quantity of a good or service supplied is greater than the quantity demanded at a given price.

Supply Function

A mathematical expression representing how the quantity supplied of a good is influenced by its price and possibly other factors.

Demand Function

A mathematical expression that describes the relationship between the quantity of a good demanded and its price.

Coconuts

The large, hard-shelled seeds of the coconut palm, used as food and for making various products.