What is a potential impact of quotas on consumers?

Quotas are government-imposed limits on the quantity of a specific good that can be imported into a country. When quotas are implemented, they restrict the supply of those goods in the marketplace. As a result, when the supply decreases due to these limitations, the prices of the specific items that are subject to the quota tend to rise.

This increase in price can occur because there is less competition from foreign producers, which can significantly reduce the availability of those items in the domestic market. Consequently, consumers may have to pay more for goods that are limited by the quota, leading to higher prices for specific items rather than an overall decrease in prices or a broader selection of products.

In summary, quotas can lead to an increase in prices for the specific items that are restricted, impacting consumers negatively by making those goods less affordable.