Which of the following is a similarity between the impact of import quotas and the impact of tariffs?

A) Both increase the prices paid by American buyers.
B) Both increase profitability for the foreign sellers.
C) Both increase the net prices received by foreign sellers.
D) Both increase tax revenues for the U.S.government.

Import Quotas

Restrictions imposed by a government on the amount or value of goods that can be imported into a country, often used to protect domestic industries.

Tariffs

Taxes imposed by a government on imported goods and services.

Revenue

The sum of revenue resulting from the sales of products or services that are central to a company's main business activities.