Assume that the United States imposes an import quota on Italian shoes. Relative to the equilibrium world price that would exist in the absence of import quotas, the equilibrium price of shoes in the United States will most likely _____, and the equilibrium price of shoes in Italy will most likely _____.
This is because there is be scarcity in the United States for Italian shoes whereas in Italy there will be surplus and deflation will force the seller you sell at giveaway prices most likely.
