If the United States imposes a tariff on imported cars, the

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When the United States imposes a tariff on imported cars, the price in the United States will rise, but neither the U.S. demand curve nor the U.S. supply curve will shift. The reason for this is that the tariff is a tax on the imported cars, and this tax will be passed on to consumers in the form of higher prices. As a result, the quantity demanded by U.S. consumers will fall, but the quantity supplied by U.S. producers will rise by an equal amount, so there is no shift in the supply or demand curve.

If the United States Imposes a Tariff on Imported Cars