Which of the following statements is true?
A) If the United States imposes a tariff on Swiss chocolate imports, the price of chocolate in the Switzerland is likely to increase.
B) If the United States imposes a quota on Swiss chocolate imports, the price of chocolate in the United States is likely to increase.
C) If Switzerland imposes a "voluntary export restraint" on chocolate exports to the United States, the price of chocolate in the United States is likely to decrease.
D) all of the above

Question

Quizplus · Accepted Answer

When a quota is imposed on imports, it limits the quantity of goods that can enter a country, which can lead to a decrease in supply and an increase in price within the importing country, in this case, the United States.

Which of the Following Statements Is True