Question

Which of the following will likely occur if Israel imposes a quota on automobiles imported from the United States? (1 point)
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.
Israeli consumers will purchase more automobiles, and Israeli producers will manufacture fewer automobiles.
Israeli consumers will purchase fewer automobiles, and Israeli producers will manufacture more automobiles.

Answer 1

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

A quota reduces imports (total supply), raising prices and lowering quantity demanded, while domestic producers increase output to replace the restricted imports.