Which of the following will likely occur if Israel imposes a quota on automobiles imported from the United States?(1 point)

Responses

Israeli consumers will purchase more automobiles, and Israeli producers will manufacture fewer automobiles.
Israeli consumers will purchase more automobiles, and Israeli producers will manufacture fewer automobiles.

Israeli consumers will purchase fewer automobiles, and Israeli producers will manufacture fewer automobiles.
Israeli consumers will purchase fewer automobiles, and Israeli producers will manufacture fewer automobiles.

Israeli consumers will purchase more automobiles, and Israeli producers will manufacture more automobiles.
Israeli consumers will purchase more automobiles, and Israeli producers will manufacture more automobiles.

Israeli consumers will purchase fewer automobiles, and Israeli producers will manufacture more automobiles.

1 answer

If Israel imposes a quota on automobiles imported from the United States, it is likely that Israeli consumers will have limited access to American automobiles due to the restriction on imports. This typically leads to an increase in the prices of available automobiles, causing consumers to purchase fewer cars overall.

At the same time, with reduced competition from imported vehicles, Israeli producers may take advantage of the situation and increase their own production to fill the gap left by the limited imports from the U.S.

Therefore, the most likely outcome is:

Israeli consumers will purchase fewer automobiles, and Israeli producers will manufacture more automobiles.