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 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 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, the likely outcome would be that Israeli consumers will purchase fewer automobiles, and Israeli producers will manufacture more automobiles.

Quotas limit the quantity of a good that can be imported, which typically leads to higher prices for consumers and incentivizes domestic production. Therefore, the correct response is:

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