In an offer curve graph with country A's exports on the horizontal axis and country B's exports on the vertical axis, which one of the following events will shift or pivot country A's offer curve to the right?
A) the imposition of a tariff by country B
B) a decrease in demand by A for B's products
C) a tariff reduction by A on B's products
D) an increase in demand by B for A's products

Question

Quizplus · Accepted Answer

A tariff reduction by A on B's products makes B's products cheaper in A, increasing A's demand for B's products and thus increasing A's willingness to trade, shifting A's offer curve to the right.

In an Offer Curve Graph with Country A's Exports on the Horizontal