Refer to the above figure. A shortage occurs if the government imposes

A positive technological change will cause the supply of a good to increase

Indicate whether the statement is true or false

Which of the following is the rationale behind the infant industry argument for import restrictions?

a. Import restrictions allow new industries, which have cost disadvantages, to compete with bigger firms from abroad. b. Import restrictions prevent foreign firms from selling low-quality raw materials to new domestic industries. c. Import restrictions help protect industries whose existence, owners claim, is vital to the security of the nation. d. Import restrictions prevent foreign firms to engage in unfair practices such as dumping, or selling their products below the cost of production.