C) an import quota increases profits of domestic producers more than a tariff.

What is the deadweight loss of the import quota for the domestic economy. The deadweight loss from an import quota. A deadweight loss is a cost to society created by market inefficiency, which occurs when supply and demand are out of equilibrium. D) the government collects revenue.

However, they will lead to higher prices for consumers, a decline in economic welfare and could lead to retaliation with other countries. Import quota effects on the importing country’s consumers. The national welfare effect of an import tariff is.

Taxes also create a deadweight loss because they prevent people from engaging in purchases they would. An import quota lowers consumer surplus in the import market. Deadweight loss like with tariffs, the increase in the domestic price increases producer surplus and decreases consumer surplus:

An import quota lowers consumer surplus in the import market. An import quota, like a tariff, reduces the quantity of imports and moves a market closer to the equilibrium that would exist without. Supply of domestic cars is upward sloping ;

B) a tariff generates a greater reduction in exports than does an import quota. An import quota by a small country has no effect on the foreign country. In international trade the governments of various countries intervene to provide protection to domestic industries against foreign industries.quotas and tarriffs are the most.

An import quota is a limit on the number / volume of imports that can be brought into a particular country in each time period. An import quota, like a tariff, reduces the quantity of imports and moves a market closer to the equilibrium that would exist without trade. Foreign and domestic cars are perfect substitutes ;