if-the-domestic-demand-is-100000-units-and-domestic-supply-is-30000-units-at-the

Question

If the domestic demand is 100,000 units and domestic supply is 30,000 units at the world price, and an import quota of 40,000 units is imposed, what is the change in imports?

Accepted Answer

Imports decrease by 30,000 units.

Answer

Imports decrease by 70,000 units.

Answer

Imports increase by 10,000 units.

Answer

Imports remain unchanged.