When the United States imposed a 25% tariff on imported pickup trucks, the price of Japanese pickup trucks in the United States:

Question

Quizplus · Accepted Answer

When a tariff is imposed on a foreign good, the price of that good in the importing country usually increases by less than the amount of the tariff. This is because the exporting country will absorb some of the cost of the tariff in order to remain competitive in the importing country's market. Therefore, the price of Japanese pickup trucks in the United States likely rose by less than 25% after the tariff was imposed.

When the United States Imposed a 25% Tariff on Imported