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?
a. No; the imports of trucks declined from 1980 to 2000.
b. Yes; the rise in market price was less than the tariff imposed, implying that Japanese producers lowered their prices to maintain market share.
c. Yes; but trucks and SUVs became indistinguishable, and a number of conclusions can be drawn.
d. No clear conclusions can be drawn.
Answer: b. Yes; the rise in market price was less than the tariff imposed, implying that Japanese producers lowered their prices to maintain market share.
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A) good A is a normal good. B) good B is an inferior good. C) goods A and B are substitutes. D) goods A and B are complements. E) none of the above
If three firms of similar sizes join to form a cartel, then it is most likely that
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