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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

User Necklondon
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1 Answer

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Answer: A. Increase; Decrease

User Jon Goodwin
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