Trade Restrictions Result in All of the Following Except One

question 205

Multiple Choice

Trade restrictions result in all of the following except one.Which is the exception?

• A)higher prices
• B)fewer choices
• C)improved quality
• D)misallocation of resources
• E)reduced competition

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Definitions:

Equilibrium Quantity

The amount of products or services available and sought after at the balance price within a marketplace.

Opportunity Cost

Opportunity cost is the loss of potential gain from other alternatives when one alternative is chosen.

Consumer Surplus

The separation between the total amount consumers are equipped and willing to pay for a good or service and what is effectively paid.

Total Surplus

The sum of consumer and producer surplus, reflecting the total benefit to society from the production and consumption of goods and services.