Problem
Demonstrate the effect of the following on demand and supply in the short run and the long run.
a. Assume that a textile quota expires, reducing demand for textiles imported from Mexico. The biggest competition Mexico faces is from the Chinese textile market. Market: Mexican textile market. (Assume this is an increasing-cost industry.)
b. The European Union harmonized all taxes, which raised taxes on French restaurants. Assume restaurants are a constant-cost industry.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.