Question
The nation of Burundi, a small nation, has installed an import quota on the importation of tennis shoes which has become binding, i.e. the level
The nation of Burundi, a small nation, has installed an import quota on the importation of tennis shoes which has become binding, i.e. the level of imports is at the quota limit . If Burundi suddenly experiences an increase in demand for tennis shoes, which of the following will most likely occur?
A) there will be increases in the domestic production of tennis shoes in Burundi
B) there will be a decrease in the domestic quantity demanded of tennis shoes in Burundi
C) the domestic price of tennis shoes in Burundi will fall
D) there will be an increase in the number of tennis shoe imports
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