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

Question

9. 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 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. False True

Explanation / Answer

trade restrictions mostly benefits domestic producers and hurt domestic sellers as there restrictions raise the domestic prices of the goods,

true,

consumers are in large group size and widely distributed compared to sellers thus it makes it difficult to influence prices.

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