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Trade policies have both positive and negative consequences to businesses, consumers, and governments. A company in Japan recently proposed a revolutionary new concept for home washing machines that could make all other forms of washing machine obsolete. As a result, other countries may impose a quota on the imports of washing machines from Japan.
If a country imposes quotas on imports of the revolutionary new washing machine, which of the following statements would be true?
a. The number of washing machines sold to the country with quotas will increase and the price will increase.
b. The number of washing machines sold to the country with quotas will decrease and the price will increase.
c. The number of washing machines sold to the country with quotas will decrease and the price will remain the same.
d. The number of washing machines sold to the country with quotas will increase and the price will decrease.
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