An Import Quota Will

question 279

Multiple Choice

An import quota will

• A) lead to a shift of the demand curve.
• B) leave the equilibrium price unchanged and increase the quantity sold.
• C) limit the amount of a foreign good that can be brought into the United States.
• D) limit the amount of a good local producers can make.

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Definitions:

Demand Curve

A graph showing the relationship between the price of a good and the quantity demanded by consumers over a range of prices.

Equilibrium Price

The cost where the amount of products offered matches the amount of products sought by consumers.

Equilibrium Quantity

The quantity of goods or services supplied is equal to the quantity of goods or services demanded at the market equilibrium price.

Supply Curve

A graphical representation showing the relationship between the quantity of goods that producers are willing to sell and the price levels of those goods.