An economic analysis of the burdens imposed on the colonists by the Navigation Acts for commodities that were imported from Europe via England can best be described as:
A) A shift back in the demand curve and a resulting decrease in the price of the goods.
B) A shift back in both the supply and demand curves.
C) A shift out of the supply curve and a shift back in the demand curve.
D) A shift back in the supply curve, which increases the price and decreases the quantity.

Question

Quizplus · Accepted Answer

The Navigation Acts restricted the trade between the colonies and other countries, effectively reducing the supply of goods by mandating that all goods imported into the colonies be shipped through England first. This artificial limitation on supply would shift the supply curve back (to the left), leading to higher prices and lower quantities of goods available, as described in option D.

An Economic Analysis of the Burdens Imposed on the Colonists