If demand for a product is increasing, an import tariff is less restrictive than an import quota.

Name: If demand for a product is increasing, an import tariff is less restrictive than an import quota.
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Quizplus · Accepted Answer

An import tariff allows for more flexibility in market response to changing demand, as the quantity of imports can adjust to meet demand. An import quota, on the other hand, strictly limits the amount of imports, which can lead to shortages and higher prices if demand exceeds the quota limit.

If Demand for a Product Is Increasing, an Import Tariff