A quota raises the price of the product on which the quota has been placed,decreases consumers' surplus,increases producers' surplus,and generates tariff revenue for the government.

Question

Quizplus · Accepted Answer

A quota does raise the price of the product and can decrease consumers' surplus and increase producers' surplus, but it does not generate tariff revenue for the government. Tariff revenue comes from tariffs, not quotas.

A Quota Raises the Price of the Product on Which