After a nation starts importing a good from overseas, the domestic price of the good
A) stays the same.
B) rises.
C) falls.
D) might change, but more information about what the country exports is needed to determine if the price rises, falls, or does not change.
E) might change, but more information about what else the country imports is needed to determine if the price rises, falls, or does not change.
C
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Erin and Deidre, two residents in Ithaca, New York, are planning a trip to Boston. Erin, the sales manager for a large retailer, has to attend a business meeting
Deidre, a college student on vacation, is planning a leisurely trip to visit friends and relatives. Whose demand curve for air travel is likely to be more elastic? A) Deidre B) Erin C) There is no difference in their price elasticities of demand. D) The elasticity of the demand curves for Erin and Deidre cannot be determined without more information.
In order to stimulate the economy, the government uses fiscal policies such as reducing tax rates
a. True b. False Indicate whether the statement is true or false