Suppose a country, whose production and consumption of coffee is large relative to the world market, has just entered the global market. If the country is a net exporter of coffee, we would expect:
A. an increase in both world price and quantity of coffee.
B. an increase in world price and decrease in world quantity of coffee.
C. a decrease in both world price and quantity of coffee.
D. a decrease in world price, and increase in world quantity of coffee.
D. a decrease in world price, and increase in world quantity of coffee.
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Rational expectations are the theory according to which people optimally use all the information they have, including information about government policies, when forecasting the future.
Answer the following statement true (T) or false (F)
Which of the following is NOT a reason the Fed changes the rate of growth of the money supply?
A) to influence the amount of consumption B) to influence the amount of investment C) to shift the demand for money curve D) to influence aggregate demand
The Herfindahl-Hirschman index is a measure of
A) the profit margin of an industry. B) market size. C) the degree of collusion among firms in a market. D) the degree of concentration among firms in a market.
Discuss probable incidence of a local tax on business property
What will be an ideal response?