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The imposition of an import quota shifts the demand or supply in what direction?

User Caneta
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1 Answer

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Final answer:

An import quota shifts the supply curve to the left, causing a decrease in supply.

Step-by-step explanation:

When an import quota is imposed, it shifts the supply curve to the left, resulting in a decrease in supply. This is because the quota restricts the quantity of imported goods that can enter a country's market. As a result, the demand or supply of the product is shifted in the opposite direction of the curve that was affected. In this case, the supply curve shifts to the left, causing a decrease in supply.

User Saisha
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