A tariff ________ consumer surplus and an import quota ________ consumer surplus.
A)decreases;decreases
B)increases;increases
C)decreases;increases
D)increases;decreases
E)does not change;does not change

Question

Quizplus · Accepted Answer

Both tariffs and import quotas limit the supply of foreign goods, raising prices and reducing consumer surplus.

A Tariff ________ Consumer Surplus and an Import Quota ________

A Tariff Consumer Surplus and an Import Quota