Tariffs and import quotas tend to:

Question

Quizplus · Accepted Answer

Tariffs and import quotas are trade barriers that increase the prices of imported goods and reduce the quantity imported. This leads to a decrease in consumer surplus and a reduction in total surplus because the cost of producing goods domestically may be higher than the cost of importing them. Additionally, these measures can lead to retaliation from trading partners, which can harm domestic industries that rely on exports. Therefore, the best choice is D.

Tariffs and Import Quotas Tend To