Which of the following is a similarity between the impact of import quotas and the impact of tariffs?
A)Both increase the prices paid by American buyers.
B)Both increase profitability for the foreign sellers.
C)Both increase the net prices received by foreign sellers.
D)Both increase tax revenues for the U.S.government.

Question

Quizplus · Accepted Answer

Both import quotas and tariffs increase the prices paid by American buyers. Import quotas limit the supply of a particular foreign product, causing the price to increase as demand remains constant. Tariffs increase the price of a foreign product by adding an extra tax on top of the original price, making it more expensive for American buyers.

Which of the Following Is a Similarity Between the Impact