Refer to the Article Summary. All else equal, a depreciation of the Chinese yuan relative to a currency such as the U.S. dollar should ________ Chinese exports and ________ imports to China

What will be the likely effect of an increase in the demand for American goods in the markets of Mexico on the demand for dollars and the exchange rate between dollars and pesos?

What will be an ideal response?

Refer to the figure above. What is the producer surplus when Lithasia opens to free trade?

A) $2 B) $5 C) $20 D) $21