Analysts have suggested that the cost of bras is related to trade restrictions on textile imports. What does the price of bras have to do with tariffs and quotas?
A) Trade restrictions protect consumers by keeping the price of bras low.
B) Trade restrictions in the form of tariffs keep prices of bras high, but replacing them with quotas will result in lower prices.
C) Trade restrictions keep the prices of bras high, and ending them will result in lower prices.
D) Trade restrictions do not influence the price of bras; the price is determined by domestic technology and the overall inflation rate.

Question

Quizplus · Accepted Answer

Trade restrictions like tariffs and quotas limit the supply of imported goods, which can lead to higher prices for consumers. Removing these restrictions would increase supply and potentially lower prices.

Analysts Have Suggested That the Cost of Bras Is Related