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Question: The debate centres on whether they should impose tariffs on imports or use quotas. Which system is better for consumers? Answer: From the perspective
Question: The debate centres on whether they should impose tariffs on imports or use quotas. Which system is better for consumers?
Answer: From the perspective of the consumer, an import tariff is preferable to an import quota because it is less restrictive than the latter. Furthermore, an import quota raises the prices for consumers, making them higher than the tariff, and as a result, the deadweight loss for consumers is greater.
Question: Explains when it makes sense for government to interfere.
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