Why did the U.S.price of imports of compact trucks (like the Toyota
Tacoma) not increase by 25% when the U.S.Customs Service
Reclassified them as "complete or unfinished trucks" with a tariff of
25%?
A) U.S.truck dealers that retailed imported compact trucks lowered their retail prices and absorbed part of the tariff.
B) U.S.consumers negotiated lower retail prices from U.S.truck dealers selling imported compact trucks.
C) The U.S.government decided not to collect the 25% tariff on imported Japanese compact trucks and instead made them subject to
Voluntary export restraints.
D) Japanese truck manufacturers lowered their prices on trucks sold in the U.S.market and absorbed part of the tariff.
Correct Answer:
Verified
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