A reduction in tariffs and quotas on imported goods shifts the
A)AD curve to the left.
B)AS curve to the left.
C)AS curve to the right.

Question

Quizplus · Accepted Answer

A reduction in tariffs and quotas on imported goods would result in increased competition and a greater variety of goods available in the market, leading to an increase in the quantity and quality of inputs available to producers. This would shift the AS curve to the right as firms become more productive and efficient in their production processes.

A Reduction in Tariffs and Quotas on Imported Goods Shifts