How Will an Export Quota Imposed by a Large Exporting

question 44

Multiple Choice

How will an export quota imposed by a large exporting country affect the country's domestic price?

• A) It will cause an increase in the domestic price.
• B) It will cause a decrease in the domestic price.
• C) It will have no effect upon the domestic price.
• D) It will first cause an increase, then a decrease in the domestic price.

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