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

Question

Responses

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

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 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 fewer automobiles.

Answer 1

If Israel imposes a quota on automobiles imported from the United States, the likely outcome is:

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

Imposing a quota limits the number of foreign automobiles that can be imported, which typically leads to a reduction in the availability of those automobiles in the market. Consequently, consumers may have fewer options and possibly face higher prices, leading to a decrease in overall purchases. Meanwhile, local producers may take advantage of the reduced competition from imports and increase their production to fill the gap in the market.