Refer to the given data. Assuming that Alpha and Beta are the only two nations in the world, the equilibrium world price of steel must be between:
Answer the question on the basis of the following data for the hypothetical nations of Alpha and Beta. Q s is domestic quantity supplied and Q d is domestic quantity demanded.
A. $5 and $4.
B. $4 and $3.
C. $3 and $2.
D. $2 and $1.
C. $3 and $2.
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Refer to the figure above. Calculate the total surplus in Lithasia under free trade
A) $150 B) $250 C) $325 D) $375
If we let P = the domestic price of a basket of goods and Pf the foreign price of the same basket of goods measured in domestic currency:
A. You cannot determine the relative prices of foreign goods from the equation P/Pf . B. If P/Pf > 1 foreign products will seem inexpensive. C. If P/Pf >1 foreign products will seem expensive. D. If P/Pf = 1 the nominal exchange rate is also = 1.
Assets of the commercial banking system include
A. loans and deposits. B. deposits. C. reserves and loans. D. reserves and deposits.
If supply and demand both simultaneously increase,
A. the effect on the market clearing price is indeterminate, and the equilibrium quantity definitely rises. B. the market clearing price definitely rises, and the equilibrium quantity definitely falls. C. the market clearing price definitely rises, and the effect on the equilibrium quantity is indeterminate. D. the market clearing price definitely falls, and the effect on the equilibrium quantity is indeterminate.