Consumers receive more consumers' surplus when __________.
A) tariffs exist.
B) tariffs and quotas do not exist.
C) quotas exist.
D) a and c

Question

Quizplus · Accepted Answer

Consumers receive more consumers' surplus when tariffs and quotas do not exist because those policies restrict trade and limit consumer choices, leading to higher prices and reduced surplus for consumers. When trade is free and unrestricted, consumers have access to a wider range of options and can choose the goods and services that provide the highest satisfaction at the lowest prices, increasing their overall surplus.

Consumers Receive More Consumers' Surplus When __________