If your primary motive was to raise prices on imports, would you use tariffs or quotas? Why would you want to do this?

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Stephanie Dominguez · Accepted Answer

Final Answer : If your primary motive was to raise prices on imports, then your choice would be tariffs. Tariffs are government taxes on goods or services entering a country. They help equalize price competition between foreign and domestic goods. Quotas are restrictions placed on the amount of a product that may enter or leave a country. See Figure 7-2.

If your primary motive was to raise prices on imports, would you use tariffs or quotas? Why would you want to do this?

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