In 1981, Japanese auto manufacturers signed a "voluntary restraint agreement" that limited the number of cars they would export to the United States. The effect of this was to
A. increase the price that dealers obtained for Japanese cars in the United States.
B. lower the quantity of domestic cars available to American buyers.
C. benefit Japanese auto manufacturers by reducing the number of cars they had to ship to the United States, allowing them to sell more in their domestic market.
D. drive down the price of Japanese cars compared to U.S.-made cars.
Answer: A
You might also like to view...
The above figure shows supply and demand curves for apartment units in a large city. If the city government passes a law that establishes $450 per month as the legal maximum rent, consumer surplus will be
A) a. B) a + b + f. C) a + b + c. D) a + b + c + f + g.
If Dave and Jesse are the only two fishermen in town and neither is bothered by the other's fishing, the lake they fish in is not a common resource
a. True b. False Indicate whether the statement is true or false