Use the following graph showing the domestic demand and supply curves for a specific product in a hypothetical nation called Marketopia to answer the next question.
When the world price for this product is $0.50, Marketopia will
A. import 500 units.
B. export 100 units.
C. import 400 units.
D. import 100 units.
Answer: C
You might also like to view...
Consistent with the mercantilist theory, the colonies had
(a) a trade deficit with England. (b) a trade surplus with England. (c) a balance of trade with England. (d) about an equal number of annual trade deficits and surpluses over the years.
Suppose the demand for widgets is given by QD = 100 - 5p - pd + 2Y, where Y is average consumer income, p is the price of lemons, and pd is the price of doodads. According to this equation, widgets are an inferior good
Indicate whether the statement is true or false
Unexpected high inflation redistributes wealth from:
A. those who save to those who borrow. B. those who borrow to those who save. C. those who borrow to banks. D. banks to those who save.
If bus travel is an inferior good, then its income elasticity of demand will be
a. strictly greater than one. b. positive. c. equal to zero. d. negative.