What is effect of import restrictions on prices?

Import restrictions may increase or decrease the prices of commodities. Import restriction implies the unavailability of best supply or product in the market, resulting in second best product to mount sales. This can acquire higher prices under restricted supplies.

On the other hand, restricted supplies will promote domestic producers to enter the market. Hence resulting in the more domestic competition, leading to reduced prices.

Considering the technological aspect, import restriction will cause in lag in technology. Hence using out dated technology may actually increase the prices.

Gradpoint: they cause prices to rise