Question

how do trade barriers such as tariffs, quotas, and embargoes generally affect prices for consumers?
a. they only affect producer prices.
b. they have no effect on prices.
c. they cause prices to drop.
d. they lead to higher prices.

Explanation:

Tariffs are taxes on imports, quotas limit the quantity of imports, and embargoes halt trade completely. These reduce the supply of imported goods in the domestic market. With lower supply and unchanged or increased demand, prices for consumers rise.

Answer:

D. They lead to higher prices