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 United States?
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 importation of beluga caviar reduced the supply of caviar in the United States, causing the supply curve to shift to the left. As a result, the price of caviar is likely to increase due to reduced availability. The demand curve is not affected by government policies, so it remains unchanged.