1-The analysis of a guote implies thata) the effect of guota on trade is the same as a tariffb) a guota will cause the same deadweight losses as a tariffc) states should prefer guota instead of tariffd) a quota increases imports if it is associated with high price elasticity of demande) when a quote is applied the consumer surplus decreases but the producer surplus does notincrease because only the state benefits from the quota

Quota is the restriction imposed on quantity of a good imported while tariff refers to the increased…

1-The analysis of a quote implies that a) the effect of guota on trade is the same as a tariff b) a guota will cause the same deadweight losses as a tariff c) states should prefer quota instead of tariff d) a guota increases imports if it is associated with high price elasticity of demand e) when a quote is applied the consumer surplus decreases but the producer surplus does not wan increase because only the state benefits from the quota

1-The analysis of a quote implies that a) the effect of guota on trade is the same as a tariff b) a guota will cause the same deadweight losses as a tariff c) states should prefer quota instead of tariff d) a guota increases imports if it is associated with high price elasticity of demand e) when a quote is applied the consumer surplus decreases but the producer surplus does not wan increase because only the state benefits from the quota

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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