Assume the Auto Market Is Initially in Equilibrium with Imports

question 41

Multiple Choice

Assume the auto market is initially in equilibrium with imports from Japan taking up a significant share of the market.Now assume a quota on imports of Japanese cars is established.What will occur at the initial equilibrium price to signal market participants regarding the change that has taken place?

• A)A surplus is created by an increase in supply.
• B)A surplus is created by a decrease in demand.
• C)A shortage is created by an increase in demand.
• D)A shortage is created by a decrease in supply.

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Definitions:

Import Statement

A code statement used to bring a specific class or an entire package into visibility, so its members can be accessed without specifying their fully qualified name.

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A command that can be carried out by the Java interpreter, like declaring a variable or invoking a method.

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