A shift of the U.S. demand curve for Mexican pesos to the left and a decrease in the pesos price per dollar would likely result from:
a. an increase in the U.S. inflation rate relative to the rate in Mexico.
b. a change in U.S. consumers' tastes away from Mexican products and toward products made in South Korea, India, and Taiwan.
c. U.S. buyers perceiving that domestically-produced products are of a lower quality than products made in Mexico.
d. all of these.
b
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The effects of a quota include:
A) decreasing consumers' surplus. B) increasing total revenue for the importers who sell the allowed number of imported units. C) increasing producers' surplus. D) b and c E) a, b, and c
Which of the following is an accurate statement about external economies of scale?
a. They involve a rise of market prices. b. They involve a reduction of input costs. c. They involve a shift of the MC curve upward. d. They involve a shift of the ATC curves to the right.