Question

warm-up
type your response in the box.
as you read this scenario, consider the effect that restrictions on trade have on an economy. then answer the question that follows.
marisol has always enjoyed a certain chocolate made in poland. for the past few years, shes been able to find the chocolate at her local grocery store for nearly the same price as domestic brands. lately, though, she has noticed that the store has far less of the polish chocolate, and it has almost doubled in price. she reads an article online that discusses how the government has just restricted the amount of goods that can come into the country from european nations.
how has the restriction on european imports affected marisol?

Explanation:

Analyze the trade restriction

The government restricted the amount of goods entering from European nations. This policy is an import quota, which directly limits the supply of imported Polish chocolate.

Connect to supply and demand

Using the Imports and Exports and Effects of Trade concepts, restricting imports decreases the domestic supply of the foreign good. This supply shift causes the market price of the Polish chocolate to rise and the available quantity to fall.

Evaluate consumer impact

Using the Consumer Behavior concept, Marisol is affected as a consumer. She faces a higher price (almost doubled) and reduced availability (far less in stock), reducing her purchasing power and consumer surplus.

Answer:

The restriction on European imports has affected Marisol in two main ways:

1. Reduced Availability: The import quota has significantly decreased the supply of her favorite Polish chocolate, making it much harder to find at her local grocery store.
2. Higher Prices: The reduced supply has caused the price of the chocolate to nearly double, reducing her purchasing power and making it more expensive for her to purchase the product she enjoys.