When a quota/trade barrier is instituted,the loss of domestic consumer surplus may be transferred to all of the following except
A)foreign consumers.
B)domestic producers.
C)foreign producers.
D)consumers of other domestic products.

Question

Quizplus · Accepted Answer

The loss of domestic consumer surplus cannot be transferred to consumers of other domestic products as they are not affected by the quota/trade barrier. The other options - foreign consumers, domestic producers, and foreign producers - may all face some impact from the quota/trade barrier in terms of changes in the price, quantity, or accessibility of the affected product.

When a Quota/trade Barrier Is Instituted,the Loss of Domestic Consumer