The difference between a tariff and a quota and determine the agents that benefit or get harmed from such restrictions on imports Concept Introduction: Tariff: A tariff is a tax imposed by the government on the imported goods and services to make it less competitive than the goods produced in the domestic markets. Quota: A restriction on the quantity of goods and services imposed by the government that can be imported into the domestic markets is termed as a quota.

Question

Want to see the full answer?

Answer 1

Question

Chapter 3, Problem 14P

To determine

The difference between a tariff and a quota and determine the agents that benefit or get harmed from such restrictions on imports

Concept Introduction:

Tariff: A tariff is a tax imposed by the government on the imported goods and services to make it less competitive than the goods produced in the domestic markets.

Quota: A restriction on the quantity of goods and services imposed by the government that can be imported into the domestic markets is termed as a quota.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

of The following graph shows the domestic supply of and demand for oranges in Jordan. The world price (Pw) of oranges is $780 per ton and is represented by the horizontal black line. Throughout the question, assume that the amount demanded by any one country does not affect the world price of oranges and that there are no transportation or transaction costs associated with international trade in oranges. Also, assume that domestic suppliers will satisfy domestic demand as much as possible before any exporting or importing takes place. PRICE (Dollars perton) 1220 1165 1110 1055 1000 045 + 890 835 780 725 670 Domestic Demand 0 30 60 Domestic Supply 8 00 120 150 180 210 QUANTITY (Tons of nrannee) W 240 270 300

Question: What Is The Effect Of An Increase In Import Tariff On A Popular Good To Consumers?

00 7 F. PRICE (Dollars per ton) 4. Effects of a tariff on international trade The following graph shows the domestic supply of and demand for soybeans in Honduras. The world price (Pw) of soybeans is $530 per ton and is represented by the horizontal black line. Throughout the question, assume that the amount demanded by any one country does not affect the world price of soybeans and that there are no transportation or transaction costs associated with international trade in soybeans. Also, assume that domestic suppliers will satisfy domestic demand as much as possible before any exporting or importing takes place. 2. Domestic Demand Domestic Supply 770 740 710 680 650 620 06 P, 530 MacBook Pro Search or type URL 4. 51 9.