What is the effect of import restrictions on supply?
a. they cause the available supply of goods to drop.
b. they cause the available supply of goods to rise.
c. they often cause supply to rise steeply and then drop.
d. they usually do not have any lasting effect on supply.

The first answer is correct (A).

If a good sold in one country is imported from another country, a restriction on the importation of that good will cause a drop in supply.

Note: The only condition capable of refuting this hypothesis occurs if the good is also produced by the national industry and the import is restricted in order to protect the domestic producer of the good. In that case, the offer could even increase.

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