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When Import Quotas Are Imposed by a Government

Question 270

Multiple Choice

When import quotas are imposed by a government


A) the domestic producers always lower the prices of their products to ensure that their products are sold.
B) the government is trying to discourage consumers from buying foreign-made goods.
C) the supply of the product on the domestic market increases.
D) the price ceiling for the product has to be lowered.

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