When the United States imposed a 25% tariff on imported pickup
Trucks, the price of Japanese pickup trucks in the United States:

Question

Quizplus · Accepted Answer

When a tariff is imposed, the price of the imported goods tends to rise to cover the cost of the tariff. However, the degree to which the price rises depends on various factors such as the elasticity of demand and supply, the competitiveness of the industry, and the availability of substitutes. In this case, the price of Japanese pickup trucks in the U.S. likely rose by less than 25% because the market for pickup trucks is highly competitive, and there are alternative domestic and foreign brands available. Thus, Japanese manufacturers may not have been able to fully pass on the cost of the tariff to consumers.

When the United States Imposed a 25% Tariff on Imported