Recall the Application about the cost of using import restrictions to protect jobs in the lumber industry to answer the following question(s).
-Recall the Application.Softwood lumber is subject to import quotas and tariffs,and these policies protect roughly 600 jobs in the industry.Which of the following statements is true about the impact of protecting these jobs?

Question

Quizplus · Accepted Answer

Consumer surplus decreases because import quotas and tariffs on softwood lumber increase the price of lumber, making it more expensive for consumers. This reduction in consumer surplus occurs because consumers have to pay higher prices than they would in the absence of these trade restrictions.

Recall the Application About the Cost of Using Import Restrictions