A Country Moves from a Situation of No Trade to a Situation

question 92

Multiple Choice

A country moves from a situation of no trade to a situation where a good is exported.In the exporting country the price of the good ________,and producer surplus ________.

• A)rises;increases
• B)falls;decreases
• C)does not change;increases
• D)does not change;decreases
• E)rises;decreases

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Definitions:

Wrongfully Rejected

The improper refusal of a contracting party to accept performance or delivery of contracted goods or services.

Resells

The act of selling something that one has previously bought to a third party.

Original Buyer

The first purchaser of a good or service, directly from the manufacturer or provider, before any subsequent resale.

Additional Remedies

Refers to legal solutions or compensations provided beyond ordinary damages, including injunctions and specific performance to address a wrong or breach of contract.