Use a graph to show the impact on the price of Japanese cars sold in the United States if the United States imposes import quotas and other trade restrictions that decrease the supply of Japanese cars. Now, draw another graph to show how the change in the price of Japanese cars affects the price of American-made cars in the United States. Explain the market outcome in each graph and the link between the two graphs.

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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Use a graph to show the impact on the price of Japanese cars sold in the United States if the United States imposes import quotas and other trade restrictions that decrease the supply of Japanese cars. Now, draw another graph to show how the change in the price of Japanese cars affects the price of American-made cars in the United States. Explain the market outcome in each graph and the link between the two graphs.

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