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Suppose a quota is imposed on the sale of imported coffee in the U.S. market. This quota is aimed primarily at increasing U.S. employment and
Suppose a quota is imposed on the sale of imported coffee in the U.S. market. This quota is aimed primarily at increasing U.S. employment and the profits of domestic sellers. Which of the following is a secondary effect caused by the quota?
An increase in the profits of domestic firms due to an increase in the price of coffee
A decrease in consumer surplus due to an increase in the price of coffee
An increase in the employment of U.S. firms due to a higher price of coffee
A decrease in U.S. imports of foreign-produced coffee
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