Question

100 pts!!!

Which of the following explains why tariffs and quotas raise the cost of protected products, such as sugar, to consumers?


High demand causes the government to raise revenues to protect domestic farmers

High demand forces domestic businesses to lower prices to match foreign competitors’ prices

High demand encourages world prices to increase at regular intervals

High demand encourages domestic quantities to increase, raising domestic prices higher than world prices

Answer 1

Answer: D

Explanation:

Answer 2

I hope this helps :)

Explanation:

I would say C. Because tey put tariffs and quotas on stuff that wa high in demand, not just in the United States, but everywere. So slowly prices all around the world increased.