Were the results of the U.S. tariff increase on imported small Japanese truck imports consistent with the predictions of the model of a tariff applied to a good exported by a foreign monopoly?

Question

Quizplus · Accepted Answer

The rise in market price was less than the tariff imposed, implying that Japanese producers lowered their prices to maintain market share, which is consistent with the predictions of the model of a tariff applied to a good exported by a foreign monopoly. The fact that imports of trucks declined from 1980 to 2000 is not necessarily inconsistent with the model, as the decrease can be attributed to other factors besides the tariff. The comparison of trucks and SUVs is irrelevant and does not provide a clear conclusion.

Were the Results of the U