How will an export quota imposed by a large exporting country affect the world price?
A) It will cause an increase in the world price.
B) It will cause a decrease in the world price.
C) It will have no effect upon the world price.
D) It will first cause an increase, then a decrease the world price.

Question

Quizplus · Accepted Answer

An export quota imposed by a large exporting country will reduce the supply of the good on the world market, leading to an increase in the world price.

How Will an Export Quota Imposed by a Large Exporting