Which statement about trade protection is correct?
1 )
A tariff results in a greater decrease in demand for an import the lower is its price elasticity of demand.
2 )
Embargoes are only an effective trade barrier when the demand for imports is price-elastic.
3 )
Export subsidies to domestic firms will prevent the dumping of foreign products in the domestic market.
Quotas are less effective than tariffs for raising government revenue.
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