Compared to an Import Quota, an Equivalent Tariff May Provide

Multiple Choice

Compared to an import quota, an equivalent tariff may provide a less certain amount of protection for home producers since

A) a tariff has no deadweight loss in terms of production and consumption.
B) foreign firms may absorb the tariff by offering exports at lower prices.
C) tariffs are effective only if home demand is perfectly elastic.
D) quotas do not result in increases in the price of the imported good.