Refer to the diagram. Which of the following supply and demand shifts portray the long-run problem that farms face?

Refer to Figure 9.4. If the government establishes a price floor of $40 and purchases the surplus, total consumer and producer surplus will be

A) $15. B) 30 widgets. C) $1,050. D) $1,200. E) $1,350

If India has an absolute advantage in rug production when compared to England, then:

a. India should export rugs to England. b. England should export rugs to India. c. international trade should not occur. d. England uses fewer resources to produce rugs than India. e. India uses fewer resources to produce rugs than England.