Suppose that Paraguay can produce 12 wheat or 3 corn and Bolivia can produce 4 wheat or 2 corn. Suppose that opportunity costs are constant. Which of the following is a potentially agreeable trade arrangement for Paraguay and Bolivia?
A) Paraguay trades one corn to Bolivia for three units of wheat.
B) Bolivia trades one corn to Paraguay for three units of wheat.
C) Bolivia trades one corn to Paraguay for one wheat.
D) Paraguay trades one wheat to Bolivia for two corn.
B
Economics
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Assume that when price is $20, quantity demanded is 9 units, and when price is $19, quantity demanded is 10 units. Based on this information, we can conclude that over the price range from $19 to $20, demand is price:
A) elastic. B) unit elastic. C) inelastic. D) cannot be determined.
Economics
An increase in consumer confidence would shift the:
A) aggregate demand curve rightward. B) aggregate demand curve leftward. C) aggregate supply curve rightward. D) aggregate supply curve leftward.
Economics