The figure below shows the demand (D) and supply (S) curves of cocoa in the U.S.Figure 21.4

-When barriers to trade are imposed, we should expect some groups to be harmed at the expense of other groups.

Question

The figure below shows the demand (D) and supply (S) curves of cocoa in the U.S.Figure 21.4
 
-When barriers to trade are imposed, we should expect some groups to be harmed at the expense of other groups.

Quizplus · Accepted Answer

When barriers to trade are imposed, some groups may benefit while others may be harmed. For example, domestic producers may benefit from protectionism while consumers may face higher prices. Similarly, foreign producers may be harmed by the barriers. The distribution of costs and benefits depends on the specific barriers and their impacts on different groups.

The Figure Below Shows the Demand (D) and Supply (S)