A tariff imposed by Canada on Japanese cars _______ the price of cars in Canada and _______ the quantity of Japanese cars imported into Canada.

Question

Quizplus · Accepted Answer

When a tariff is imposed on imported goods, the price of those goods increases in the importing country. This means that the price of Japanese cars in Canada would increase, leading to a decrease in demand and the quantity of Japanese cars imported into Canada. Therefore, the correct answer is C, which states that the tariff raises the price of cars in Canada and decreases the quantity of Japanese cars imported into Canada.

A Tariff Imposed by Canada on Japanese Cars _______ the Price