Howard believes that there should be no trade restrictions for any reason. What effect would Howard say that trade restrictions have on prices?
A) He would argue that by encouraging competition with trade restrictions, prices are likely to decrease.
B) He would argue that restrictions would cause greater competition and therefore lead to higher prices.
C) He would say that trade restrictions have no impact on prices, but they do restrict consumers' choices.
D) He would say that restrictions reduce competition and therefore cause an increase in prices.
E) He would argue that trade restrictions increase prices because they break up domestic monopolies.

Question

Quizplus · Accepted Answer

Howard believes that trade restrictions reduce competition, leading to an increase in prices. When trade is restricted, foreign competitors cannot enter the market, reducing competition and allowing domestic firms to charge higher prices. This can lead to reduced consumer choice as well. Therefore, Howard would argue that trade restrictions have a negative impact on both prices and choice.

Howard Believes That There Should Be No Trade Restrictions for Any