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Assume that the U.S. produces mangoes in California and also imports them from India. India produces...

Assume that the U.S. produces mangoes in California and also imports them from India. India produces mangoes at a lower cost. Instead of a free trade environment in the U.S., a quantity quota is imposed by the U.S. government. The quota on mangoes from India will

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If the  U.S. produces mangoes in California and also imports them from India. India produces mangoes at a lower cost. Instead of a free trade environment in the U.S., a quantity quota is imposed by the U.S. government.

The quota on mangoes from India will limit the quantity of Indian mangoes in the U.S. market and hence increase the price of Indian mangoes if the demand for Indian mangoes remains constant. At the same time the mango producers in California US will get an advantage because now they can compete with the Indian mangoes as their price has gone up and hence their sell and hence profit will increase. This will also improve the balance of trade for the US because of a decrease in import.

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