Import quotas tend to result in all of the following except ?
Correct answer: A. domestic producers of the imported good being harmed
- A. domestic producers of the imported good being harmed
- B. domestic consumers of the imported good being harmed
- C. Prices increasing in the importing country
- D. Prices falling in the exporting country
Explanation
An import quota restricts foreign supply, raising the domestic price and benefiting protected domestic producers while harming consumers. Prices generally fall in the exporting country because its exports are reduced, so producer harm is the exception.
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