When a quota/trade barrier is instituted, the loss of domestic ...

[nautica902]

When a quota/trade barrier is instituted, the loss of domestic consumer surplus may be transferred to all of the following except
 a. foreign consumers.
  b. domestic producers.
  c. foreign producers.
  d. consumers of other domestic products.

Question 2

Quotas that limit the quantity of imports of a foreign good provide an incentive for foreign suppliers to: I. Provide higher quality goods. II. Seek more open markets elsewhere. III. Lower prices to be more competitive. IV. Stop all trade with the country imposing the quotas. Which of the above statements are true?
 a. I and II.
  b. I and III.
  c. II and IV.
  d. I, III, and IV.
  e. III only.

[shaikhs]

Answer to Question 1

d

Answer to Question 2

a

[nautica902]

Thank you

[shaikhs]

No problemo