Trade restrictions cause

Question

Quizplus · Accepted Answer

Trade restrictions cause both higher prices and economic inefficiency. By limiting or restricting imports, domestic producers gain a larger share of the market and can charge higher prices, leading to inflation. Additionally, trade restrictions can cause economic inefficiency by reducing competition among producers, leading to lower quality products and higher costs of production. This can ultimately harm the overall economy by reducing consumer welfare and limiting innovation and growth.

Trade Restrictions Cause