kennedykiprotic4747 kennedykiprotic4747

10-10-2019
Social Studies

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Assume that instead of establishing a tariff, we set a quota on French computers exactly equal to the number of French computers that would be sold under a specific tariff. The resulting price of the French computers in the U.S. would be __ the price under the tariff,

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NickMagnus NickMagnus

10-10-2019

Answer:

The resulting price of the French computers in the U.S. would be the same the price under the tariff.

Explanation:

As we set a quota on French computers equal to the number of French computers that would be sold under a specific tariff, this wouldn't change demand. If there's not a change in demand, the price will be the same.

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