According to the water and diamond paradox, the value of a good to a person depends on how many utils are derived from the first unit of a good consumed

Suppose the exchange rate in the year 2010 was 4 yuan per dollar and in 2011 the exchange rate fell to 3 yuan per dollar

If the price of a Chinese sweater was 120 yuan in both years, the new dollar price in 2011 would be ________ and imports of Chinese sweaters would ________. A) $30; increase B) $40; increase C) $40; decrease D) $30; decrease E) $40; stay the same because the price stayed the same at 120 yuan

One determinant of the derived demand for a resource is the

a. price of the product made using the resource b. extra cost of the resource c. marginal resource cost of the resource d. availability of the resource in the marketplace e. quantity of the resource demanded