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An Import Quota or Tariff on French Wine That Raises

Question 11

Multiple Choice

An import quota or tariff on French wine that raises the prices for wine will probably:


A) hurt domestic wine drinkers but help domestic wineries, which will gain from the higher prices.
B) hurt both domestic wine drinkers and domestic wineries, but this will be more than offset by a reduction in driving fatalities.
C) hurt both domestic wine drinkers and domestic wine producers because of a reduction in competition.
D) hurt domestic wineries, which will lose business as a result of the higher prices.

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