The Figure Below Shows the Demand (D) and Supply (S)

The figure below shows the demand (D) and supply (S) curves of corn syrups.Figure 21.3

-The basic difference between a tariff and quota is that:

A) a quota can be imposed both on imports and exports, whereas a tariff can be imposed only on imports.
B) a quota yields revenue to the government, whereas a tariff does not yield any revenue.
C) a tariff reduces the import of the goods with greater certainty than quota as the amount of import restricted by quota depends on the price elasticity of demand for importable.
D) a tariff is a quantitative restriction on imports, whereas a quota is an import duty.
E) a tariff raises the price of the product only in the domestic market, whereas with a quota, both domestic and foreign producers receive a higher price.

Correct Answer:

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