Assume that the United States imposes a quota on Scottish wool suits. Relative to the equilibrium price that would exist in the absence of quotas, the equilibrium price of suits in the United States will most likely _______ , and the equilibrium price of suits in Scotland will most likely _______ .

A) remain the same; decrease
B) remain the same; increase
C) increase; increase
D) increase; decrease


Answer: D) increase; decrease

Economics

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