Final answer:
The quantity of textiles consumed in Isoland will likely decrease under a textile consumption tax. Such taxes raise the cost for consumers, leading to reduced consumption and a search for cheaper alternatives. Historical trade control measures have shown the impact of import quotas and tariffs on domestic consumption and industry.
Step-by-step explanation:
Under a textile consumption tax, the quantity of textiles consumed in Isoland will likely decrease. When governments impose a consumption tax on specific goods, such as textiles, the cost of these goods increases for consumers. This price increase can lead consumers to reduce their consumption or seek cheaper alternatives, thus lowering the overall quantity consumed within the market. Historical examples, such as the international Multifiber Agreement, illustrate how trade control measures, including import quotas and tariffs, impact the quantity of goods consumed domestically by altering the cost and availability of imported products.
Despite various trade barriers, the share of apparel imported into the United States increased significantly over time, indicating that other factors, such as global market forces and consumer preferences, also play a critical role in determining the quantity of consumed goods. Nevertheless, these trade regulations have a direct impact on both the market and the domestic textile industry, leading to higher prices for consumers and the protection of certain domestic jobs, though often at a significant cost.