Suppose the United States and Japan enter into a voluntary export agreement in which Japan imposes an export quota on its automakers.The largest share of the export quota's "revenue effect" would tend to be captured by

Question

Quizplus · Accepted Answer

Japanese automakers would tend to capture the largest share of the export quota's "revenue effect" because the quota restricts supply, potentially allowing them to raise prices and capture additional revenue.

Suppose the United States and Japan Enter into a Voluntary