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  • Econ Ex.

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    unifier-freckle0
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    When import quotas are imposed, domestic prices typically rise as supply decreases, which may increase domestic production and decrease import volumes depending on the elasticity of demand. Removing tariffs would have the opposite effect, causing prices and domestic output to fall while imports rise. The impact on government tariff revenue and total consumer expenditure depends on the elasticity of demand for imports.

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    When import quotas are imposed, domestic prices typically rise as supply decreases, which may increase domestic production and decrease import volumes depending on the elasticity of demand. Removing tariffs would have the opposite effect, causing prices and domestic output to fall while imports rise. The impact on government tariff revenue and total consumer expenditure depends on the elasticity of demand for imports.

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    © All Rights Reserved
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    5 views1 page

    Econ Ex.

    Uploaded by

    unifier-freckle0
    When import quotas are imposed, domestic prices typically rise as supply decreases, which may increase domestic production and decrease import volumes depending on the elasticity of demand. Removing tariffs would have the opposite effect, causing prices and domestic output to fall while imports rise. The impact on government tariff revenue and total consumer expenditure depends on the elasticity of demand for imports.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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