Question

What will happen to the price and quantity of Japanese goods in the US if the dollar depreciates causing the costs of producing Japanese goods to increase resulting in a decrease in the SUPPLY of Japanese goods

Answer 1

The prices of Japanese goods will increase.

Economic Principles of Demand and Supply

Following the principles of demand and supply, the higher the price, the higher the quantity supplied (all other factors remaining constant).

Recall that cost of production for Japanese goods has also increased according to the question. When prices increase, suppliers sometimes want to take advantage to create even additional inflation in order to get additional profit. Hence they put out more goods at the instance of increased prices.

See the link below for more about the law of supply:
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