Need help with economic hw?

Question

How does a quota affect the domestic price of the import, the domestic consumption, the domestic production, and the quantity imported.Please explain.

please help , thanx

Answer 1

Quota limits imports, thus foreign supply is limited and domestic price of imports increases.

Due to higher prices consumption will be lower.

By quotas limiting foreign supply and higher domestic prices domestic production may have higher opportunities for profits, thus domestic production increases.

Imported quantity is reduced by quotas.