Restraints on trade may do all the following except
A)decrease the quantity produced.
B)decrease profits.
C)cause a deadweight loss.
D)raise prices.
E)limit other firms' access to a market.

Question

Quizplus · Accepted Answer

Restraints on trade, such as tariffs, quotas, and other regulations, typically lead to decreased quantity produced, cause a deadweight loss, raise prices, and limit other firms' access to a market. However, they do not inherently decrease profits; in some cases, they can protect or increase profits for domestic producers by reducing competition.

Restraints on Trade May Do All the Following Except