impact on quotas

• What is one way a business can increase its output?

  By increasing their output
• How can a business raise its selling price?

  By raising the selling price
• What is the effect of increasing revenue on a business?

  It increases their revenue
• What happens to the output of firms under a quota?

  Firms decrease their output
• How do firms that export under a quota compare to those that operate under a tariff?

  Firms exporting under a quota receive a higher price for their sales compared to those under a tariff
• What is one result of certain economic conditions on prices and choice?

  Higher prices and less choice
• Do they receive any tariff revenue?

  No, they do not receive any tariff revenue.
• Why might they receive higher tax revenue at the end of the financial year?

  Because domestic firms pay their corporation tax.
• What is the relationship between domestic firms and tax revenue at the end of the financial year?

  Higher tax revenue may result from domestic firms paying their corporation tax.
• How do higher prices affect consumers' purchasing power?

  Higher prices erode the purchasing power of consumers' income
• What is the impact of higher prices on domestic firms compared to foreign firms?

  Higher prices improve conditions for domestic firms but worsen conditions for foreign firms