When a quota is imposed, the difference between the price the consumer pays and the price the foreign supplier gets goes to the government that imposed the quota.

Question

Quizplus · Accepted Answer

When a quota is imposed, the difference between the price the consumer pays and the price the foreign supplier gets does not go to the government that imposed the quota. The government may impose fees or charges on the importers, but the profit from the price difference goes to the importers, distributors, or retailers.

When a Quota Is Imposed, the Difference Between the Price