Which of the following chain of events occurs when a tariff is imposed on a
good?
O Domestic prices rise, shifting the domestic supply curve rightward.
O Domestic prices rise, shifting the demand curve leftward and the domestic supply curve
rightward.
O Domestic prices fall, decreasing the domestic quantity supplied and increasing the
quantity demanded.
O Domestic prices rise, decreasing the quantity demanded and increasing the domestic
quantity supplied.
O Domestic prices fall, shifting the demand curve rightward, and consumers buy more of
the good.
