Both tariffs and import quotas
A)increase the quantity of imports and raise the domestic price of the good.
B)increase the quantity of imports and lower the domestic price of the good.
C)decrease the quantity of imports and raise the domestic price of the good.
D)decrease the quantity of imports and lower the domestic price of the good.

Question

Quizplus · Accepted Answer

Both tariffs and import quotas decrease the quantity of imports by making them more expensive, therefore raising the domestic price of the good. Tariffs add a tax to the import price, while import quotas limit the quantity of imports allowed into the country.

Both Tariffs and Import Quotas