Consider a market that is in equilibrium. If it experiences an increase in supply, what will happen? The supply curve will shift to the:
A. right and the equilibrium price and quantity will rise.
B. right and the equilibrium price will decrease and the equilibrium quantity will increase.
C. right and the equilibrium price and quantity will fall.
D. left and the equilibrium price and quantity will fall.
B. right and the equilibrium price will decrease and the equilibrium quantity will increase.
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Refer to Table 9-8
a. Which person has an absolute advantage in the production of bows? arrows? b. Which person has a comparative advantage in the production of bows? c. Which person has a comparative advantage in the production of arrows?
The experience of sub-Saharan Africa, as compared to that of "Other Asia" (not including the HPAEs) supports the argument that
A) high rates of protection tend to harm economic growth. B) the poorer is the country the easier it is for it to "catch up" economically. C) low rates of protection tend to promote economic growth. D) free trade always best stimulates a developing country's economy. E) neither trade liberalization nor import substitution is a foolproof strategy for economic development.