The Effect of a Quota Is to

question 45

Multiple Choice

The effect of a quota is to

• A)increase quantity supplied and lower price.
• B)increase quantity supplied and increase price.
• C)increase demand for the good and increase price.
• D)reduce the quantity supplied and raise price.

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Definitions:

Inventory Finance

A line of credit or loan specifically intended to help businesses purchase inventory, often secured by the inventory itself.

Long-Term Note

A debt obligation with a repayment period typically exceeding one year, often used for significant purchases or investment.

Refinancing

The process of replacing an existing loan with a new loan, typically to secure better interest rates or loan terms.

Indirect Guarantees

Obligations assumed by a third party to ensure the performance or repayment of another entity's debts or obligations without a direct contractual commitment.