Voluntary trade restrictions by foreign countries on their exports to the United States raise the price domestic consumers pay and also raise the price foreign consumers pay.

Question

Quizplus · Accepted Answer

Voluntary trade restrictions by foreign countries on their exports to the United States raise the price domestic (U.S.) consumers pay due to reduced supply, but they can lower the price foreign consumers pay because the restricted goods might increase in supply in other markets.

Voluntary Trade Restrictions by Foreign Countries on Their Exports to the United