According to the Data Presented in the Text, the Effect

question 2

Multiple Choice

According to the data presented in the text, the effect of Japan's voluntary export restraints on cars was to:

• A) decrease the price of Japanese cars in the U.S.
• B) increase the number of Japanese cars imported in the U.S.
• C) caused Japanese car companies to delay building plants in the U.S.
• D) increase the price of Japanese cars in the U.S.

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Definitions:

Substitute Goods

Products or services that can serve as replacements for each other; when the price of one increases, the demand for the alternative is likely to increase.

Time Available

The total hours or minutes that can be allocated to certain activities or tasks within a given period.

Price-Elastic

Refers to a situation where the demand for a product changes significantly in response to a change in price.

Bayer Aspirin

A brand of aspirin produced by Bayer AG, known for its pain-relieving, fever-reducing, and anti-inflammatory properties.