Import quotas and tariffs produce similar results.Which of the following is not one of those results?
A)The domestic price of the good increases.
B)Consumer surplus of domestic consumers increases.
C)Producer surplus of domestic producers increases.
D)A deadweight loss is experienced by the domestic country.

Question

Quizplus · Accepted Answer

Import quotas and tariffs both result in an increase in the domestic price of the good, an increase in producer surplus for domestic producers, and a deadweight loss for the domestic country. However, consumer surplus of domestic consumers decreases with both measures, instead of increasing.

Import Quotas and Tariffs Produce Similar Results