If a quota is set at the same quantity of imports that results from a tariff in Country A,
A)the quantity consumed in Country A is less under the quota than under the tariff.
B)the quantity consumed in Country A is the same under the quota and under the tariff.
C)the quantity consumed in Country A is more under the quota than under the tariff.
D)the government tariff revenue is greater than the importers' profit from the import quota.
E)the government tariff revenue is less than the importers' profit from the import quota.

Question

Quizplus · Accepted Answer

If a quota is set at the same quantity of imports that results from a tariff in Country A, the quantity of imports will remain the same under the quota and the tariff. Therefore, the quantity consumed in Country A will also remain the same under both the quota and the tariff.

If a Quota Is Set at the Same Quantity of Imports