Suppose That at the Current World Price Bananas Are Imported

question 44

Multiple Choice

Suppose that at the current world price bananas are imported into Canada.Suppose also that domestic supply is perfectly inelastic and domestic demand has unit elasticity.If Canada were to place a tariff on imported bananas,the

• A)revenues of the foreign exporters of bananas would rise.
• B)quantity imported would be unaffected.
• C)quantity imported would rise.
• D)price of bananas in Canada would rise,but total domestic expenditures would fall.
• E)price of bananas in Canada would rise,but total domestic expenditures would be unaffected.

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Definitions:

Variance

A measure of the spread of a set of values, calculated as the average of the squared deviations from the mean.

Index Funds

Mutual funds or ETFs designed to track the components of a market index, offering broad market exposure and low operating expenses.

Expected Monetary Value

A statistical concept that calculates the average outcome of a future event that may or may not happen, taking into account all possible scenarios and their probabilities.

Average Payoff

The expected outcome or return of an investment or decision averaged over all possible scenarios.