Japanese car imports into Europe used to be restrained by a voluntary export quota. Use a demand and supply diagram to show the effect of this quota on the price of Japanese cars in Europe. One...

Japanese car imports into Europe used to be restrained by a voluntary export quota. Use a demand and supply diagram to show the effect of this quota on the price of Japanese cars in Europe. One research study found that the effect of the quota was to raise the price of the average Japanese car to the EU consumer by 12 per cent. It also found that the price of competing European cars rose by 7 per cent. How would you explain this?