The major difference between a quota imposed on imports
and a tariff is that:
with a quota there are no revenues that flow to the
government.
a quota affects only producer surplus,
while a tariff affects both producer and consumer
surpluses.
a tariff affects only producer
surplus, while a quota affects both producer and
consumer surpluses.
a tariff affects only producer
surplus, while a quota affects only consumer
surplus.
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