Question

What is the effect of import restrictions on supply?
A. They cause the available supply of goods to drop.
B. They cause the available supply of goods to rise.
C. They often cause supply to rise steeply and then drop.
D. They usually do not have any lasting effect on supply.

Answer 1

A - they cause the availability of the goods to drop, as the import restriction, such as a quota, restricts the amount of supply at "x" quantity. If the supply prior to the import restriction is at a greater amount then "x" then supply falls to meet the boundary.

Answer 2

Definitely A