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Question
Bans on imports, import quotas, voluntary quotas, and tariffs on goods
a. sometimes increase equilibrium quantities, but not prices.
b. increase equilibrium quantities, but decrease prices.
c. increase equilibrium quantity and prices.
d. decrease equilibrium quantity and prices.
e. decrease equilibrium quantities, but increase prices.
Answer
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Related questions
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The economic entity most likely to engage in price gouging is
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What is the long-run consequence of a price ceiling law?
a. A surplus will continue to exist and will grow larger over time.
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Suppose Solomon lives in a community with no price controls. What do you expect will happen if his town borders a community where there is a binding price ceiling on most products?
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