Refer to the figure above. Which of the following statements is correct?
A) After the economy is open to free trade, it will export 6 pens.
B) After the economy is open to free trade, it will import 6 pens.
C) After the economy is open to free trade, it will export 10 pens.
D) After the economy is open to free trade, it will import 10 pens.
D
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The cranberry market is perfectly competitive. Reports that consuming cranberries can lead to improved health result in a permanent increase in the demand for cranberries and an immediate upward jump in the price of cranberries
As time passes, the price of cranberries ________ and the initial firms' economic ________. A) falls; profit will be eliminated B) rises still higher; loss will be eliminated C) rises still higher; profit will not change D) falls; loss will be increased E) falls; profit will not change
If the government cuts taxes ________
A) disposable income falls B) planned expenditures rise C) the IS curve shifts to the left D) all of the above E) none of the above