The imposition of an import tariff by a nation can be represented by a rotation of the:
A) nation's offer curve away from the axis measuring the commodity of its comparative advantage
B) the nation's offer curve toward the axis measuring the commodity of its comparative advantage
C) the other nation's offer curve toward the axis measuring the commodity of its comparative advantage
D) the other nation's offer curve away from the axis measuring the commodity of its comparative advantage

Question

Quizplus · Accepted Answer

An import tariff makes the imported good more expensive, which reduces the quantity of the imported good that consumers are willing to buy. This causes the nation's offer curve to rotate away from the axis measuring the commodity of its comparative advantage.

The Imposition of an Import Tariff by a Nation Can