Tariffs and quotas on imported goods used as inputs in production shift the
A)AS curve to the right.
B)AS curve to the left.
C)AD curve to the right.
D)None of the choices are correct.

Question

Quizplus · Accepted Answer

Tariffs and quotas on imported goods used as inputs in production increase the cost of production for firms, leading to a decrease in supply and a leftward shift of the AS curve. This is because the cost of production has increased and firms will produce less at each price level.

Tariffs and Quotas on Imported Goods Used as Inputs in Production