If the United States bans the importation of Japanese automobiles:

Question

Quizplus · Accepted Answer

Banning the importation of Japanese automobiles would likely lead to an increase in demand for domestic cars, which would create more jobs in the U.S. auto industry. However, the loss of competition from Japanese automakers could lead to higher prices for consumers, reducing their consumer surplus. U.S. producers of cars would benefit from the increased demand, but the lack of competition could also lead to a decrease in producer surplus for those companies who become complacent. Therefore, choice B is the most likely outcome. Choice D is not a realistic option.

If the United States Bans the Importation of Japanese Automobiles