When the home country is small, how will an increase in a tariff protecting a home monopolist affect the home country's demand curve?
a. There will be an upward parallel shift in the demand curve.
b. The demand curve will pivot upwards from its vertical intercept.
c. There will be a downward parallel shift in the demand curve.
d. The demand curve will pivot downwards from its vertical intercept.
Ans: a. There will be an upward parallel shift in the demand curve.
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