Generally, people buy one product or service instead of another because they perceive it to be a better value. a. true b. false

It is true that generally people buy one product or service instead of another because they perceive it to be a better value.
If they think that one product or service suits them better, people will opt for that product or service instead of a different one. They have to consider the use of that product, its price, as well as pros and cons that product or service will provide them with.

High demand encourages domestic quantities to increase, raising domestic prices higher than world prices

Explanation:

Due to tariffs and quotas, the amount of the protected goods coming into the country from countries where it is cheaper will reduce.

This will push people towards the domestic manufacturers of the goods. This increase in demand for local goods will lead to the producers having to charge more as well as produce more. As they are charging more based on the situation in their own country, the prices will be more than world prices.