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 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 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.

Answer 1

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

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

Quotas typically limit the supply of imported goods, which can lead to higher prices and reduced availability for consumers. As a result, consumers may purchase fewer imported automobiles. In contrast, with a reduced supply of imports, domestic producers may increase their production to fill the gap left by the limited imports.