Tariffs ________ the domestic price of the good and import quotas ________ the domestic price of the good.
A) lower; lower
B) lower; raise
C) raise; lower
D) raise; raise

Question

Quizplus · Accepted Answer

Tariffs and import quotas both serve to restrict imports, which reduces the supply of the good in the domestic market, leading to an increase in the domestic price of the good.

Tariffs ________ the Domestic Price of the Good and Import