Which of the following chain of events occurs when a tariff is imposed on a good?
A) Domestic prices fall, shifting the demand curve rightward, and consumers buy more of the good.
B) Domestic prices fall, decreasing the domestic quantity supplied and increasing the quantity demanded.
C) Domestic prices rise, shifting the domestic supply curve rightward.
D) Domestic prices rise, shifting the demand curve leftward and the domestic supply curve rightward.
E) Domestic prices rise, decreasing the quantity demanded and increasing the domestic quantity supplied.
E
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The production possibilities curve shifts to the left when resources in the economy increase
Indicate whether the statement is true or false
Which of the following would be most likely to reduce the rate of unemployment?
a. a business recession b. an Internet job listing system that makes it easier to get information about job openings and available employees c. an increase in unemployment compensation benefits d. a rise in the minimum wage
Which of the effects listed below increases the quantity of goods and services demanded when the price level falls and decreases the quantity of goods and services demanded when the price level rises?
a. the wealth effect b. the interest-rate effect c. the exchange-rate effect d. All of the above are correct.
In general, a firm will be likely to invest as long as the
A. profits realized from the investment are sufficient to cover the interest payments. B. firm can sell bonds directly to the public instead of borrowing from a bank. C. firm doesn't have to borrow any money to make the investment. D. interest rate is less than the inflation rate.