Like tariffs,quotas tend to lead to
A)higher prices and reduced imports.
B)increased government revenue.
C)increased consumer surplus.
D)All of the above.

Question

Quizplus · Accepted Answer

Quotas limit the amount of imports, which can lead to higher prices due to reduced competition. This can also lead to reduced imports, as the limit on the amount of goods that can be imported is reached. It does not necessarily lead to increased government revenue or increased consumer surplus.

Like Tariffs,quotas Tend to Lead to