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

When the United States imposes tariffs on Japanese cars, the cost of importing those cars to the United States increases, which means that the price of Japanese cars in the United States will increase. As a result, the quantity of Japanese cars imported into the United States will decrease due to the increase in price caused by the tariff. Therefore, the correct answer is option C: raises; decreases.

A Tariff Imposed by the United States on Japanese Cars