Why would the government impose quotas when tariffs not
Since quotas do not raise revenues but have the same trade effects as do tariffs, why not just have tariffs? Why would the government impose quotas when tariffs not only would reduce imports but also bring in new revenues for the treasury?
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question - let demand be given by qd 8 - 2p let supply be given by qs 2p a tax of 2 per unit is imposed on consumer
since quotas do not raise revenues but have the same trade effects as do tariffs why not just have tariffs why would
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