6. Lobbying for or against trade restrictions Trade restrictions affect the over

Question

6. Lobbying for or against trade restrictions Trade restrictions affect the overall welfare of an economy because they change the price consumers pay for a good and the quantity produced and consumed domestically. Trade restrictions, such as quotas, usually benefit domestic and hurt domestic because they the domestic price of a good. True or False: Consumers find it difficult to exert the political influence needed to remove trade restrictions because the costs to consumers are very small and widely dispersed, which makes it difficult for consumers to organize. O True False

Explanation / Answer

trade restrictions basically benefits the producers and hurt domestic consumers beause consumers have to pay the digher domestic price for goods,

the statement mentioned here is true, consumers are large in number and thus the losses to consumers are widely spread compared to the sellers,

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