Which of the following statements is false?
A) As a result of a quota,consumers' surplus falls.
B) As a result of a tariff,producers' surplus rises.
C) As a result of a tariff,consumers' surplus falls.
D) As a result of a quota,producers' surplus rises.
E) none of the above

Question

Quizplus · Accepted Answer

All statements A, B, C, and D are true. A quota limits the quantity of goods that can be imported, leading to higher prices and thus reducing consumer surplus while potentially increasing producer surplus in the domestic market. Similarly, a tariff increases the cost of imported goods, leading to higher prices, which can reduce consumer surplus and increase domestic producer surplus.

Which of the Following Statements Is False