Question:

[Economics HW!!] If the U.S. government imposes an import quota on Japanese video game players,?

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Please help me out with my econ homework!

If the U.S. government imposes an import quota on Japanese video game players, the ____________ curve for Japanese video game players in the U.S. will shift..

A. supply; leftward

B. supply; rightward

C. demand; leftward

D. demand; rightward

I thought it's A... what do you think?

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2 ANSWERS


  1. A. supply; leftward

    Quota reduces delivery, thus shifts supply left.


  2. Not sure what you are getting at on leftward or rightward without knowing what the chart is but the supply will be limited and may not meet demand.  

    \If the import quota is larger than demand, nothing will happen unless demand increases.  Again, if the import quota is less than demand, then demand will sometimes tend to increase and you start seeing offers on eBay for game players.  

    Often control like this is accomplished via import duties which increase the price of the product instead of quotas.

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