The main difference is that quotas restrict quantity while tariff works through prices. Thus, quota is a quantitative limit through imports. ... If an import quota of EC amount is imposed then price would rise to Pt because the total supply (domestic output plus imports) equals total demand at that price.

Understanding Tariffs, Quotas, and Taxes
Globalization has significantly impacted trade regulations, including tariffs, quotas, and taxes, which are crucial in shaping economic policies.
Tariffs
- Tariffs are taxes imposed by a government on imported goods.
- They are used to increase the cost of foreign products, making domestic goods more competitive.
- Tariffs generate revenue for the government and can protect local industries from foreign competition.
Quotas
- Quotas are limits set by a government on the quantity of a specific good that can be imported during a given timeframe.
- They aim to regulate the volume of trade and protect domestic industries from being overwhelmed by foreign products.
- Unlike tariffs, quotas do not generate revenue directly; instead, they restrict supply and can lead to higher prices for consumers.
Taxes
- Taxes are compulsory financial charges imposed by the government on individuals and businesses to fund public services.
- In the context of international trade, taxes can include value-added tax (VAT) and other forms of indirect taxes on imported goods.
- While taxes can influence market prices and consumption patterns, they serve broader economic purposes beyond trade regulation.
Conclusion
In summary, while tariffs and quotas are specific measures aimed at regulating international trade, taxes serve a broader role in economic governance. Understanding these distinctions is essential for comprehending the complexities of globalization and its effects on the Indian economy.