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 a tariff is imposed on Japanese cars, the price of cars in the United States will increase because the cost of importing the cars has increased. As a result, the quantity of Japanese cars imported into the United States will decrease because consumers will be less likely to buy the more expensive cars.

A Tariff Imposed by the United States on Japanese Cars