Suppose the U

Multiple Choice

Suppose the U.S.government imposes a binding quota on the number of Japanese-made cars allowed into the United States.Assuming that Japanese-made cars and U.S.-made cars are substitutes in consumption,we would expect the price of Japanese cars to _____ and the price of U.S.-made cars to _____.

A) increase;increase
B) increase;decrease
C) decrease;increase
D) decrease;decrease