Question

Which of the following would likely result from a Malaysian quota on peanuts imported from the United States? The price of peanuts would increase in the United States. The quantity supplied of peanuts would decrease in the United States. The price of peanuts would increase in Malaysia. The quantity supplied of peanuts would increase in Malaysia. The quantity demanded of peanuts would increase in Malaysia.

Answer 1

The price of peanuts would increase in Malaysia.

Step-by-step explanation:

Almost all countries of the world are involved in building trade relationships because not every crop or product can be grown in a single company.

A country rich in an item tends to export the extra amounts of that particular product. In exchange, it might import other products which have a short production rate in its own countries.

But as we all know, the prices of the imported items are often higher as compared to the local products of a country.

Hence, in the scenario mentioned in the question, it is most likely that Malaysia will increase its prices of peanuts imported from United States.