When compared to quotas, tariffs have a relatively small effect on the domestic price of the good.

Name: When compared to quotas, tariffs have a relatively small effect on the domestic price of the good.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Tariffs directly increase the cost of imported goods, leading to higher domestic prices, whereas quotas limit the quantity of goods imported without directly affecting price. However, both can lead to higher domestic prices, but the effect of tariffs is more direct and immediate on prices.

When Compared to Quotas, Tariffs Have a Relatively Small Effect