Question

What's a good way to start this?

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 on 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.

Answer 1

First draw a graph showing japanese cars sold in US market now impose a quota (limit) which will increase the price of the japanese cars.


now draw another graph of domestic cars in US with the demand curve shifting to the right and the quanity demanded increasing

explanation would be prolly to support the domestic producers and to balance the bop market outcome domestic producers would flourish increased demand for labor and goods that are related to this car industry