Explain why a quota may result in lower total surplus in the home country than a tariff, even if they have the same effect on imports and the domestic price.
Explain why a quota may result in lower total surplus in the home country than a tariff, even if they have the same effect on imports and the domestic price.
Chapter35: International Trade Restrictions
Section: Chapter Questions
Problem 3E
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Explain why a quota may result in lower total surplus in the home country than a tariff, even if they have the same effect on imports and the domestic price.
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