Exhibit 20-5
-Suppose that U.S. tastes for British goods increase. Then, in Exhibit 20-5

Name: Exhibit 20-5 -Suppose that U.S. tastes for British goods increase. Then, in Exhibit 20-5
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Question

Exhibit 20-5 
-Suppose that U.S. tastes for British goods increase. Then, in Exhibit 20-5

Quizplus · Accepted Answer

An increase in U.S. tastes for British goods would indicate an increase in demand for British goods. Therefore, the demand curve would shift to the right from D₁ to D₂. The supply curve would not shift, as there is no change in the production or availability of British goods. Therefore, the correct answer is D.

Exhibit 20-5 -Suppose That U.S. Tastes for British Goods Increase. Then, in Increase