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3 years ago

What would happen if the European Union put a quota on American jeans and only allowed 4,000, pairs of jeans to be imported?

2 answers:

7 0

If the European Union put a quota on American jeans only allowing a small portion to be imported the demand for the jeans would rise even though the supply would not follow that. When there is a small limit on something that consumers want, the price usually goes up because they know they will sell the items regardless and in this case that may happen. The price of jeans will rise, the demand will rise, but the supply will not.

Advocard [28]3 years ago

3 0

The quota on American jeans will increase the price of American jeans and make them more desirable in the European Union.

Further Explanation:

Luxury items:

Luxury items refer to the commodities that are highly desirable and considered as a status icon in a specific society or community. Generally, the consumption of luxury items is regarded as conspicuous consumption. Conspicuous consumption refers to the use or purchase of the commodity to show one’s wealth. The luxury items are costly than the normal commodity.

Explain the effect of the quota put by the European Union (EU):

If the European Union set a quote and only allow the import of only 4,000 pair of jeans, then the demand of the American jeans will increase. The increase in the demand for the jeans will lead to an increase in their price. The scarcity of the product will make it more desirable in the EU.

Thus, the quota on American jeans will result in an increase in the price of American jeans and make them more desirable in the European Union.

Learn More:

Learn more about the demand curve brainly.com/question/2396551
Learn more about the free market society brainly.com/question/4536682
Learn more about the positive incentive brainly.com/question/8306236

Answer Details:

Grade: High school

Chapter: Types of goods

Subject: Economics

Keywords: What, would, happen, European, Union, put, quota, American, jeans, only, allowed, 4,000, pairs, jeans, imported.

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