What will be the impact on the supply for American cars, if tariff is imposed on Japanese cars with low price elasticity of supply?
A. Increase
B. Decrease
C. Remain constant
D. May or may not increase
Answer:A
What will be the impact on the supply for American cars, if tariff is imposed on Japanese cars with low price elasticity of supply?
A. Increase B. Decrease C. Remain constant D. May or may not increase