Question

When the united states imposes a quota on cheese​ imports, the price of cheese in the united states​ ______. u.s. cheese imports​ ______?

Answer 1

When the United States imposes a quota on cheese imports, the price of cheese in the United States Increases. United States Cheese imports Decreases.

It is the simple concept of Economics, that when any product is produced or imported in a limited number, the demand of that product increases and hence results in increasing the price of that particular product.

Similarly if a a quota is attached on importing a product, that product cant be delivered on the huge quantities, so the imports drastically decreases for this product.

Answer 2

The price of cheese will increase. this is due decrease in supply relative to market demand,

cheese imports into the USA will decrease because the quota will make it unprofitable for importers due to increase in cost of imported cheese.