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Unformatted text preview: w tariff • Tariff : ↑P + Q adjusts to an extent determined by shape of D curve • Another interference: import quota- direct restriction on Q of imports • Ex. : US has quotas on sugar imports • Winners –tariff and quota – producers in importing country – tariff- govt. of imp. Country (tariff revenue) quota- holder of import license • Losers- consumer in importing country- exporters – exporters may pressure for retaliation •...
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This note was uploaded on 04/19/2011 for the course EC 201 taught by Professor Ballard during the Fall '08 term at University of Michigan.
- Fall '08