Were the results of the U.S.tariff increase on imported small Japanese
Truck imports consistent with the predictions of the model of a tariff
Applied to a good exported by a foreign monopoly?

Question

Quizplus · Accepted Answer

The predicted outcome of a tariff applied to a good exported by a foreign monopoly is that the market price will rise by the amount of the tariff. However, the rise in market price was less than the tariff imposed on imported small Japanese trucks, suggesting that Japanese producers lowered their prices to maintain market share. Thus, the results were consistent with the predictions of the model.

Were the Results of the U