Assume a consumer has a horizontal demand curve for a product. His consumer surplus from buying the product
A) is maximized.
B) can't be calculated.
C) equals zero.
D) Need more information.
C
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Suppose that all countries eliminate their barriers to trade. The HeckscherOhlin model predicts that:
a. wages should become more equal throughout the world. b. wages should become more unequal throughout the world. c. the volume of international trade should fall. d. there should be increased migration of labor among countries.
Figure 7-13
Refer to . If price increases from $10 to $15, total revenue will
a.
increase by $20, so demand must be inelastic in this price range.
b.
increase by $5, so demand must be inelastic in this price range.
c.
decrease by $20, so demand must be elastic in this price range.
d.
decrease by $10, so demand must be elastic in this price range.