The supply curve shows a(n) ________ relationship between price ...

[joe]

The supply curve shows a(n) ________ relationship between price and quantity and is therefore ________ sloping.
 
  A) direct; downward
  B) direct; upward
  C) inverse; downward
  D) inverse; upward

Question 2

Explain the difference between a tariff and a quota. What impact do tariffs and quotas have on the prices of domestic and imported goods?
 
  What will be an ideal response?

[al]

Answer to Question 1

B

Answer to Question 2

A tariff is a tax imposed by government on imported goods. A quota is a limit on the number of imported goods allowed into a country. Tariffs and quotas raise prices for both domestic and imported goods.

[joe]

Gracias!

[parshano]

Thanks for the timely response, appreciate it