If the United States government were to impose a quota on wristwatches imported from Switzerland, then the

A) price of wristwatches in the United States would decrease and total quantity consumed (domestic and imported) would increase.
B) prices of wristwatches in Switzerland would rise, and that's how Switzerland would be hurt by the quota.
C) price of wristwatches in the United States would remain the same, but the quantity would fall as imports fell.
D) total quantity of wristwatches (domestic and imported) purchased would decline as prices rose.

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Chris Logsdon · Accepted Answer

Final Answer : D, Explanation :  Imposing a quota on imported wristwatches from Switzerland would limit the supply of wristwatches in the United States, leading to an increase in prices due to the reduced supply. Consequently, the total quantity of wristwatches purchased (both domestic and imported) would decline as the higher prices would reduce consumer demand.

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