Question: Suppose the value of the Japanese yen rises 20%, but in order to maintain market share in the US, major Japanese companies decide not to raise the prices. As a result, their imports do not change, but profits of Japanese manufacturers decline, so they import less capital equipment from US machinery firms. Taking the effect on both consumers and producers into account, is the US better or worse off based on the Japanese decision to hold import prices constant? Is Japan better or worse off?