Suppose we have an economy in which G = 1100, t = 0.26, Y = 3800, and YN = 4000. At Y the cyclical deficit is

When a nation exports a good, its consumer surplus ________, and its producer surplus ________

A) increases; increases B) decreases; decreases C) increases; decreases D) decreases; increases E) does not change; increases

If firms are successful in product differentiation:

a. their demand will become relatively elastic. b. consumers will believe that the firms are producing more or less identical goods. c. they can raise their prices without losing all of their customers to rivals. d. they tend to face a horizontal demand curve. e. they gradually emerge as price takers.