Example to illustrate non-tariff trade barriers

Imports and American cars are close nevertheless not ideal substitutes. When the U.S. government tried to boost American car sales through setting a price ceiling of P₁ upon imported cars in that case: (w) the quantity of cars imported will fall from Q₀ to Q₁. (x) American car prices would rise to P₂. (y) foreign car exporters would ship more luxury cars to the United States. (z) American-made car sales would rise by Q₂ to Q₀.

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