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Restrictions on the Importation of Tomatoes Reduce the Supply Available

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Restrictions on the importation of tomatoes reduce the supply available to the Canadian domestic market.Studies indicate that the demand for tomatoes is elastic.Compared to a free-trade situation,what is the effect of the import restrictions?


A) They cause lower tomato prices and a reduction in consumer expenditure on tomatoes in Canada.
B) They cause higher tomato prices and an increase in consumer expenditures on tomatoes in Canada.
C) They cause higher tomato prices and a reduction in consumer expenditure on tomatoes in Canada.
D) They cause lower tomato prices and an increase in consumer expenditure on tomatoes in Canada.

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