Tariffs and quotas are costly to consumers because:

Question

Quizplus · Accepted Answer

Tariffs and quotas restrict the supply of imported goods, which causes the price of the imported goods to increase. This results in consumers having to either pay the higher price for the imported good or switch to a higher-priced domestic good. Therefore, tariffs and quotas are costly to consumers because they have to pay more for goods that they would have had access to at a lower price if there were no trade restrictions.

Tariffs and Quotas Are Costly to Consumers Because