Import Bans,import Quotas,voluntary Export Restraints,and Tariffs on Goods All

question 40

Multiple Choice

Import bans,import quotas,voluntary export restraints,and tariffs on goods all

• A) increase equilibrium quantity and prices.
• B) decrease equilibrium quantity and prices.
• C) increase equilibrium quantities, but decrease prices.
• D) decrease equilibrium quantities, but increase prices.

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Definitions:

Equilibrium

The state in a market where supply equals demand, leading to a stable price for a given good or service.

Consumer Surplus

The difference in what consumers think to pay for a good or service and the actual amount they pay.

Equilibrium

A condition where the supply and demand in the market are equal, leading to stable prices.

Equilibrium Price

The price point at which the quantity of goods supplied equals the quantity of goods demanded, resulting in a balance between supply and demand.