When a tariff is imposed, the supply curve for the imported good
A) shifts downward and to the right.
B) shifts upward and to the left.
C) does not change.
D) becomes perfectly inelastic.

Question

Quizplus · Accepted Answer

When a tariff is imposed, the cost of producing the imported good increases, which results in a higher price for consumers. As a result, the supply curve for the imported good shifts upward and to the left, as producers are able to supply less of the good at each price level.

When a Tariff Is Imposed, the Supply Curve for the Imported