A country imposes an import quota on a good. How does this compare to imposing a tariff on the same good in terms of domestic price changes?

• A. An import quota decreases the domestic price, while a tariff increases it.
• B. Both decrease the domestic price, but a tariff generates government revenue.
• C. An import quota increases the domestic price, while a tariff has no effect.
• D. Both increase the domestic price, but a tariff generates government revenue.

Answer: (D)