Firms that are participating in persistent dumping will sell less in the foreign market and charge a higher price than in the home market.
Answer the following statement true (T) or false (F)
False
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The ________ effect of a price change refers to the impact of a change in the price of a good on a consumer's purchasing power
A) income B) substitution C) ceteris paribus D) demographics
The fact that when the price of a good goes up, people buy less of it is known as the
A) law of supply. B) law of demand. C) concept of market equilibrium. D) need for inferior goods.
Which of the following is not correct regarding dumping?
a. In the country where products are dumped, consumer surplus grows as a result of the dumping. b. Dumping involves the selling of a product by foreign producers at a price lower than that in their own countries. c. Critics of dumping recommend applying a tariff as the correct antidumping measure. d. A major difficulty with dumping by firms in other countries is that it drives up prices to the domestic consumer. e. Predatory dumping is often aimed at driving domestic producers out of business.
Two goods, X and Y, are complementary goods if the demand for X:
a. increases when the price of Y increases. b. increases when income increases. c. decreases when the price of Y increases. d. increases as the price of its substitute good increases. e. decreases as the price of its substitute good decreases.