Asked by nadezhda kurilov on May 06, 2024

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If demand for a product is increasing, an import tariff is less restrictive than an import quota.

Import Tariff

A tax imposed by a government on goods and services imported from other countries, intended to protect domestic industries and adjust trade balances.

Import Quota

A limit imposed by a nation on the quantity (or total value) of a good that may be imported during some period of time.

Restrictive

A term used to describe policies or measures that limit or control some form of activity or process.

  • Analyze the impact that tariffs, quotas, and other forms of trade barriers have on markets within countries and across the globe.
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BP
Brian PlacenciaMay 07, 2024
Final Answer :
True
Explanation :
If demand for a product is increasing, an import quota would limit the amount of the product that can be imported, potentially causing shortages and higher prices. An import tariff, on the other hand, would allow for more imports but would increase the cost of importing the product, which could lead to higher prices for consumers. Therefore, an import tariff is less restrictive than an import quota in this scenario.