Problem
On January 1, 2005, a three-decades-old system of global quotas that had limited how much China and other countries could ship to the United States and other wealthy nations ended. Over the next four months, U.S. imports of Chinese-made cotton trousers rose by more than 1,505% and their price fell 21% in the first quarter of the year (Tracie Rozhon, "A Tangle in Textiles," New York Times, April 21, 2005, C1). The U.S. textile industry demanded quick action, saying that 18 plants had already been forced to close that year and 16,600 textile and apparel jobs had been lost. The Bush administration reacted to the industry pressure. The United States (and Europe, which faced similar large increases in imports) pressed China to cut back its textile exports, threatening to restore quotas on Chinese exports or to take other actions. Illustrate what happened, and show how the U.S. quota reimposed in May 2005 affected the equilibrium price and quantity in the United States.
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.