According to the graph shown, if this economy were to open to trade, domestic producers would increase:
This graph demonstrates the domestic demand and supply for a good, as well as the world price for that good.
A. enjoy a net gain to surplus of BC.
B. suffer a net loss to surplus of BCD.
C. suffer a transfer of surplus to producers of BC.
D. experience deadweight loss of FG.
C. suffer a transfer of surplus to producers of BC.
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If Polaroid wanted damages against Kodak for infringing on its instant development film process, and the courts found a high positive cross elasticity between purchases of Polaroid instant film and 35 mm regular film, would that have strengthened or weakened Polaroid’s claim against Kodak?
What will be an ideal response?
By 2011, how much had U.S. housing prices declined from their peak in 2006?
A) 2 percent B) 33 percent C) 40 percent D) 50 percent
Suppose the price elasticity of demand for your economics textbook is -1 . If the publisher raises the price by 5 percent,
a. revenues will rise 5 percent b. quantity demanded will rise 5 percent c. total revenues will not change d. revenues will fall e. revenues will fall 5 percent
Which of the following is not an example of the principle that trade can make everyone better off?
a. Americans buy tube socks from China. b. Residents of Maine drink orange juice from Florida. c. A homeowner hires the kid next door to mow the lawn. d. All of the above are examples of the principle that trade can make everyone better off.