How Does an Import Quota Affect the Domestic Price of the Import

question 98

Essay

How does an import quota affect the domestic price of the import, the domestic consumption, the domestic production, and the quantity imported?

---

Definitions:

Unilateral Contracts

Contracts in which one party makes a promise in exchange for the other's performance, which fulfills the contract.

Informal Contract

A contract that does not require a specified form or formality in order to be valid.

Modify Terms

The act of making changes or adjustments to the conditions or stipulations of an agreement or contract.

Market Economy

An economic system where supply and demand from private enterprises and consumers freely determine the production of goods and services, prices, and distribution.