When a tariff is imposed, the demand curve for the domestic good
A) shifts downward and to the right.
B) shifts upward and to the left.
C) shifts upward and to the right.
D) shifts downward and to the left.

Question

Quizplus · Accepted Answer

When a tariff is imposed, the demand for domestic goods increases as imported goods become more expensive. This causes the demand curve for the domestic good to shift upward and to the right.

When a Tariff Is Imposed, the Demand Curve for the Domestic