A tariff imposed by the United States on Japanese cars ________ the price of cars in the United States and ________ the quantity of Japanese cars imported into the United States.

Question

Quizplus · Accepted Answer

A tariff on imported goods typically increases the cost of those goods in the importing country, leading to higher prices for consumers. Additionally, the higher prices generally result in a decrease in the quantity of the imported goods, as they become less affordable or attractive compared to domestic alternatives.

A Tariff Imposed by the United States on Japanese Cars