Recall the application about the cost of protecting a luggage job,luggage and handbags are subject to import quotas and tariffs that decrease the supply of luggage and increase the price to consumers by 13 percent.These policies protect 226 jobs in the industry,which of the following statements is true about the impact of protecting these jobs?

Question

Quizplus · Accepted Answer

The import quotas and tariffs decrease the supply of luggage and increase the price to consumers by 13 percent, leading to a decrease in consumer surplus. The protecting of 226 jobs in the industry, in this case, comes at the expense of consumers experiencing higher prices for luggage, and thus, a decrease in their surplus.

Recall the Application About the Cost of Protecting a Luggage