Question

If the U.S. government imposes a more restrictive import quota on Japanese video gaming systems, the ____________ curve for Japanese video gaming systems in the U.S. will shift ___________.

Answer 1

Supply curve shifts rightwards

Step-by-step explanation:

Where there is import restrictions, there will be lower supply for an item hence the price will increase. Therefore, there will be a rightward shift in the supply curve.

Answer 2

The correct answer is: supply; leftward.

Step-by-step explanation:

An import quota is a kind of trade restriction that limits the physical quantity of a good that can be imported on a country. In other words, an import quota reduces the equilibrium quantity supplied of imported goods.

A more restrictive import quota on Japanese video game systems will reduce the quantity of gaming systems imported. This reduction in the supply of video game systems will shift their supply curve to the left. The quantity of gaming systems will decline and their equilibrium price will increase.