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Which of the following scenarios is the best example of a protective quota?

A

U.S. limits imports of foreign built motorcycles by setting a specific number that will be allowed in.

B

U.S. limits imports of foreign built motorcycles by charging a pre-determined tax rate that makes the cycles more expensive than those domestically produced.

C

U.S. attempts to increase prices of foreign built motorcycles by making steel harder to get on the international market through reduced domestic production.

D

U.S. subsidizes the price of domestically built motorcycles to keep price competitive with foreign built motorcycles.

E

U.S. stops all foreign-built motorcycles from entering its markets.

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