asked 162k views
3 votes
Assume that the United States imposes an import quota on Italian shoes. Relative to the equilibrium world price that would exist in the absence of import quotas, the equilibrium price of shoes in the United States will most likely _____, and the equilibrium price of shoes in Italy will most likely _____.

a. increase; decrease
b. decrease; remain the same
c. decrease; increase
d. increase; remain the same

1 Answer

4 votes

Answer: A. Increase; Decrease

answered
User Jon Goodwin
by
8.1k points
Welcome to Qamnty — a place to ask, share, and grow together. Join our community and get real answers from real people.