Solved

Why Did the U

Question 93

Multiple Choice

Why did the U.S. price of imports of compact trucks (like the Toyota Tacoma) not increase by 25% when the U.S. Customs Service reclassified them as "complete or unfinished trucks" with a tariff of 25%?


A) U.S. truck dealers that retailed imported compact trucks lowered their retail prices and absorbed part of the tariff.
B) U.S. consumers negotiated lower retail prices from U.S. truck dealers selling imported compact trucks.
C) The U.S. government decided not to collect the 25% tariff on imported Japanese compact trucks and instead made them subject to voluntary export restraints.
D) Japanese truck manufacturers lowered their prices on trucks exported to the U.S. market and absorbed part of the tariff.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents