Suppose the world price of coffee is $2 per pound and Brazil's domestic price of coffee without trade is $3 per pound. If Brazil allows free trade, will Brazil be an importer or an exporter of coffee?

An increase in input prices will cause the aggregate supply curve to shift rightward

a. True b. False Indicate whether the statement is true or false

A technological advancement has just occurred in the phone camera industry. In the computer chip market this will lead to

A) an increase in price and a decrease in quantity. B) an increase in price and an increase in quantity. C) a decrease in price and a decrease in quantity. D) a decrease in price and an increase in quantity.