When Import Quotas Are Imposed by a Government

question 270

Multiple Choice

When import quotas are imposed by a government

• A) the domestic producers always lower the prices of their products to ensure that their products are sold.
• B) the government is trying to discourage consumers from buying foreign-made goods.
• C) the supply of the product on the domestic market increases.
• D) the price ceiling for the product has to be lowered.