If imports of Japanese automobiles are restricted, prices of U.S.-made automobiles in the United States will be higher than they would otherwise be.

Question

Quizplus · Accepted Answer

Restricting imports of Japanese automobiles reduces the supply of automobiles in the U.S. market, leading to less competition. This allows U.S.-made automobile manufacturers to charge higher prices than they would in a more competitive market with more imports.

If Imports of Japanese Automobiles Are Restricted, Prices of U