How Must an Import Quota Function in Order to Be

question 111

Multiple Choice

How must an import quota function in order to be effective?  

• A) It must reduce the price and increase the quantity of imports. 
• B) It must set the price of the imported good higher than the domestic equilibrium price. 
• C) It must restrict imports to a lower quantity than would be imported under free trade. 
• D) It must restrict imports to less than exports in trade with that particular country.

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