Canada has voluntarily reduced its exports of Canadian steel to Japan. Which of the following would have a similar effect on the quantity imported and the price paid for Canadian steel by Japanese producers?(1 point)

Question

Responses

Japan implements a voluntary export restraint on Japanese steel.
Japan implements a voluntary export restraint on Japanese steel.

Canada implements a tariff on Japanese steel.
Canada implements a tariff on Japanese steel.

Japan implements an import quota on Canadian steel.
Japan implements an import quota on Canadian steel.

Canada implements an export subsidy on Canadian steel.

Answer 1

The option that would have a similar effect on the quantity imported and the price paid for Canadian steel by Japanese producers is:

Japan implements an import quota on Canadian steel.

An import quota would limit the quantity of Canadian steel that can be imported into Japan, similar to the effects of Canada's voluntary reduction of exports. This would likely lead to an increase in the price of Canadian steel in Japan due to the reduced supply.