How are the domestic sellers and buyers of a good affected if a country starts importing the good?
What will be an ideal response?
If a country starts importing the good, buyers can buy the good at a lower price than the domestic price. Therefore, buyers gain. On the other hand, sellers face competition because of a lower world price, which reduces the quantity they can sell. Therefore, sellers lose.
Economics
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An adverse supply shock generally decreases the price level and the real GDP
a. True b. False Indicate whether the statement is true or false
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Which of the following would be a significant cause of income inequality in the United States?
A. Housing B. Discrimination C. In-kind transfers D. Social Security
Economics