In October 2005, the U.S. Fish and Wildlife Service banned the importation of beluga caviar, the most prized of caviars, from the Caspian Sea. What happened in the market for caviar in the U.S.?
A) The supply curve shifted to the left.
B) The supply curve shifted to the right.
C) The demand curve shifted to the right.
D) The demand curve shifted to the left.

Question

Quizplus · Accepted Answer

The ban on the importation of beluga caviar would decrease the supply of caviar in the U.S. market, causing the supply curve to shift to the left. This would likely result in an increase in the price of caviar, as the decrease in supply would make the product scarcer and therefore more expensive. There is no indication in the question that the demand curve would shift, as the ban specifically targeted the supply of beluga caviar, not the demand for caviar in general.