Sherri lives in Canada and is considering buying a new sofa. If the price level in Canada falls and the price level in the United States does not change, Canadian manufactured sofas are relatively
A) less expensive, so Sherri will likely purchase a U.S. manufactured sofa.
B) less expensive, so Sherri will likely purchase a Canadian manufactured sofa.
C) more expensive, so Sherri will likely purchase a U.S. manufactured sofa.
D) more expensive, so Sherri will likely purchase a Canadian manufactured sofa.
E) Both answers B and D could be correct depending on whether U.S. manufactured sofas were initially more expensive or less expensive than Canadian sofas.
B
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What is the difference between the short run, long run and very long run?
What will be an ideal response?
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