Economics 9708 · AS & A Level · Protectionism

Protectionism — practice question

A government abolishes its quota on imported laptops. Assuming a normal demand curve and an upward-sloping supply curve for laptops, what effects are likely for domestic laptop manufacturers?

  • Achange in price received by domestic manufacturers: decrease; change in income received by domestic manufacturers: decrease
  • Bchange in price received: increase; change in income: increase
  • Cchange in price received: decrease; change in income received: uncertain
  • Dchange in price received: increase; change in income received: uncertain

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