Suppose that the United States imposes a tariff of $500 per car on Japanese cars.The most likely effect will be to increase the price of cars in the United States by:

Question

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When the US imposes a tariff on Japanese cars, the price of cars in the US may increase by less than $500 per car as Japanese car producers may absorb some portion of the cost to remain competitive. The price of cars in Japan may also decrease by less than $500 per car as Japanese producers may export fewer cars to the US, leading to a surplus and lower prices in the Japanese market. However, the price effects in both countries will ultimately depend on the specific market conditions and elasticity of demand for cars.

Suppose That the United States Imposes a Tariff of $500