# In a tariff and import quota lead to equivalent increase in the domestic price of steel, then ? with Answer - Economics Mcqs | TestPrep

> Solved MCQ: In a tariff and import quota lead to equivalent increase in the domestic price of steel, then ? Correct Answer: C. They have identical impact on how much is produced and consumed. Verified answer explanation for FPSC, PPSC, MDCAT, NTS, and CSS competitive exam preparation.

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# In a tariff and import quota lead to equivalent increase in the domestic price of steel, then ?

Direct Answer & Quick Reference

The correct option is **C. They have identical impact on how much is produced and consumed**.

A. The quota results in efficiency reductions but the tariff does not

B. The tariff results in efficiency reductions but the quota does not

C. They have identical impact on how much is produced and consumed **(Correct Answer)**

D. They have identical impact on how income is distributed

✨ Explain with AI

Verified Key: C. They have identical impact on how much is produced and consumed
Solved by 5,164+ students

Verified against official examination board answer keys and standard curriculum textbooks.

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