Hi,
Not sure if this is a poorly worded question…
‘Both Tariff & Import Quota cause importing country’s:’
Domestic Consumption** Product Price**
Decreaase Increase
Increase Decrease
Decrease Decrease
You see I though that a tariff and quota would cause Domestic consumption to increase because if there is an import quota on a domestic country then less is brought in from overseas. Therefore people in that country must purchase from domestic companies as opposed to bringing in from abroad?
Have I missed the concept here?
The correct answer was A: Decrease, Increase