The U.S. produces strawberries in Oregon, but also imports strawberries from Chile. The production costs are lower for strawberries from Chile. Instead of a free trade environment in the U.S., the U.S. government has imposed a value quota. What will the quota on strawberries from Chile do to the U.S. market

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11-07-2022
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The U.S. produces strawberries in Oregon, but also imports strawberries from Chile. The production costs are lower for strawberries from Chile. Instead of a free trade environment in the U.S., the U.S. government has imposed a value quota. What will the quota on strawberries from Chile do to the U.S. market

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tutorconsortium33 tutorconsortium33 · Answer 1 · 2022-07-19T14:57:15+02:00

The quota on strawberries from Chile to the U.S. market will lower the price of strawberries in the U.S., and increase the number of strawberries sold in the U.S.

What is production?

Production is the process of mixing several material and immaterial inputs to create something for consumption.
It is the act of producing output, such as a good or service, that has value and contributes to people's utility.

Value quota on strawberries:

A product's pricing includes both the quantity and the price per unit.
The value quota is $1 if five apples are priced at 20 cents apiece.
Reduce the price of strawberries in the United States while increasing the number of strawberries sold in the United States.

Therefore, Lower the price of strawberries in the U.S., and increase the number of strawberries sold in the U.S.

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