What is one potential drawback of implementing quotas on imports?

Implementing quotas on imports restricts the quantity of a specific good that can be brought into a country. This limitation can lead to a reduction in consumer choices, as fewer imported goods are available in the market. Consumers may find that they have access to a narrower selection of products, and in some cases, this could lead to higher prices for the remaining goods, which are often produced domestically.

The reduction in variety can hinder consumer welfare because individuals may be unable to find the specific products they prefer or need. Additionally, with fewer imports, there can be less competition among suppliers, which can further stifle innovation and variety in the market. This dynamic highlights how quotas can curtail the diversity of goods available to consumers, leading to a less competitive market overall.