Question
The U.S. produces strawberries in Oregon, but also imports strawberries from Chile. The production costs are lower for strawberries from Chile. Instead of a free
The U.S. produces strawberries in Oregon, but also imports strawberries from Chile. The production costs are lower for strawberries from Chile. Instead of a free trade environment in the U.S., the U.S. government has imposed a value quota. What will the quota on strawberries from Chile do to the U.S. market?
A. Lower the price of strawberries in the U.S., and increase the quantity of strawberries sold in the U.S.
B. Keep the price of strawberries the same in the U.S., and increase the quantity of strawberries.
C. Lower the price of strawberries in the U.S., and lower the quantity of strawberries sold in the U.S.
D. Lower the quantity of strawberries in the U.S. and increase prices.
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