The results of a U.S.quota on the importation of Japanese automobiles is likely to _______ for automobiles in the United States and _______ automobiles in Japan.

Question

Quizplus · Accepted Answer

A quota on the importation of Japanese automobiles would reduce the supply of Japanese automobiles in the U.S. market, leading to an increase in their price. As a result, the quantity demanded of Japanese automobiles would decrease. However, in Japan, the quota would limit their access to the U.S. market and reduce the competition they face in their home market, leading to an increase in the quantity demanded of Japanese automobiles.

The Results of a U