Assume the demand curve for product X shifts to the right. This might be caused by:

A. a decline in income if X is an inferior good.
B. a decline in the price of Z if X and Z are substitute goods.
C. a change in consumer tastes that is unfavorable to X.
D. an increase in the price of Y if X and Y are complementary goods.

Answer: A

Economics

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In the figure above, international trade ________ producer surplus in the United States by ________

A) decreases; $2.88 billion B) decreases; $1.92 billion C) increases; $4.8 billion D) increases; $3.6 billion

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Use the DD-AA model to compare the domestic economic response under flexible and fixed exchange rate regimes to a temporary rise in export demand from foreign countries

What will be an ideal response?

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