Compared to a no-trade situation, if Italy imported wine,
a. the price of domestic Italian wine would decline.
b. Italian wine producers would increase their prices.
c. Italian wine producers would increase their profits.
d. domestic wine production in Italy would expand.
A
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If unexpected news raised people's expectations of a corporation's future dividends and price, then before the price changes this corporation's stock would be
a. overvalued, so its price would rise. b. overvalued, so its price would fall. c. undervalued, so its price would rise. d. undervalued, so its price would fall.
The model of monopolistic competition differs from the model of perfect competition in which of the following assumptions?
A. Perfect information B. Large number of firms C. Free entry and exit D. Product homogeneity