Suppose That the U

Multiple Choice

Suppose that the U.S. government imposes quotas rather than tariffs to replace the protection to U.S. producers after the expiration of the Multifibre Arrangement. As U.S. demand for clothing increases over time, U.S. clothing consumers will find that:

A) the price of clothing in the United States will fall.
B) the price of clothing in the United States will rise.
C) the price of clothing in the United States will not change.
D) U.S. clothing production will fall.