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 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 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 more automobiles.
Israeli consumers will purchase fewer 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, it would limit the number of U.S. automobiles that can be sold in Israel. This restriction typically leads to an increase in the price of imported automobiles due to reduced supply. As a result, Israeli consumers might purchase fewer automobiles overall because of the higher prices and limited options from U.S. producers.

At the same time, the reduced competition from U.S. imports could enable Israeli automobile manufacturers to produce more cars domestically, as they won't be competing with as many imported vehicles.

Therefore, the most likely outcome is:

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