Multiple Choice
Assuming that Canadian and French wines are substitutes in consumption,if the Canadian government imposes a quota on the amount of French wine allowed into Canada and the quota is set at a quantity below equilibrium,the price of French wine in Canada will _____ while the price of the Canadian-produced wine will _____.
A) increase;increase
B) increase;decrease
C) decrease;increase
D) decrease;decrease
Correct Answer:
Verified
Correct Answer:
Verified
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