A small country brings in tractors from abroad. The government in this country chooses to place a quota on imported tractors. What is likely to happen to the price of imported tractors and the domestic output of tractors?
- Aprice of imported tractors fall; domestic output of tractors fall
- Bprice of imported tractors increase; domestic output no change
- Cprice of imported tractors no change; domestic output fall
- Dprice of imported tractors no change; domestic output increase