Author Question: The supply curve shows a(n) ________ relationship between price and quantity and is therefore ... (Read 43 times)

joe · **on:** Jun 29, 2018

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 · **Reply #1 on:** Jun 29, 2018

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.