PH.8 Import Controls. Critics argue that if Congress wants to make the tax code more equitable, a good place to start would be removing unfair tariffs and quotas. Today, there are more than 8000 import tariffs, quotas, so-called voluntary import restraints, and other import restrictions.

Tariffs and quotas cost consumers roughly $80 billion per year, or about $800 for every American family. Some of the tightest restrictions are reserved for food and clothing that make up a large share of low-income family budgets.

The domestic shoe market shows the effects of import controls on a large competitive market.

Assume market supply and demand conditions for shoes are?